5 Best Digital Payments Stocks To Buy Now

2. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 146

Mastercard Incorporated (NYSE:MA) is one of the premier digital money stocks to invest in. On October 27, Mastercard Incorporated (NYSE:MA) reported a Q3 non-GAAP EPS of $2.68 and a revenue of $5.8 billion, outperforming Wall Street estimates by $0.10 and $140 million, respectively. Net revenue increased 15%, or 23% on a constant currency basis, which includes a 1 percentage point benefit from acquisitions. 

On November 1, Mizuho analyst Dan Dolev maintained a Buy recommendation on Mastercard Incorporated (NYSE:MA) but lowered the firm’s price target on the shares to $380 from $385 following the Q3 results. The analyst raised 2022 estimates but trimmed outer-year expectations.

According to the third quarter database of Insider Monkey, Mastercard Incorporated (NYSE:MA) was part of 146 public stock portfolios, compared to 137 in the preceding quarter. Charles Akre’s Akre Capital Management is the largest position holder in the company, with nearly 6 million shares worth $1.6 billion. 

Here is what L1 Capital International specifically said about Mastercard Incorporated (NYSE:MA) in its Q2 2022 investor letter:

“Growth in electronic payments, the continued shift away from cash and cheques, and the provision of additional services such as fraud identification and prevention continue to power Mastercard Incorporated (NYSE:MA)’s growth (Figure 14). In person cross-border transactions are recovering alongside normalization of travel.

Mastercard and Visa (we have invested in both) continue to dominate the electronic payments industry outside of China, utilizing their own multi-faceted networks as well as Government and third-party payments infrastructure to facilitate transactions. Another perfect example of a ‘Noah’s Ark’ industry structure.

Regulation, technological disruption and disintermediation, and geopolitical constraints are perennial issues for consideration, but Mastercard (and Visa) management have repeatedly demonstrated their ability to manage these issues…” (Click here to read the full text)