Here Are This Elite Fund’s Top 5 Stock Picks

3. Mastercard Incorporated (NYSE:MA)

Percentage of Lone Pine Capital’s Stock Portfolio: 6.66%

Mastercard Incorporated (NYSE:MA) is one of the two largest payment-processing companies in the world, the other one being Visa Inc. (NYSE:V), which Lone Pine Capital sold out of in the third quarter of 2023. However, the firm increased its holdings in Mastercard Incorporated (NYSE:MA) by 49% in the same quarter to 1.746 million shares worth $691.394 million.

On October 26, Mastercard Incorporated (NYSE:MA) posted a non-GAAP EPS of $3.39, outperforming the estimates by $0.18. The company’s revenues were up 12.6% YoY to $6.53 billion, exceeding the estimates by nearly $6 million. The company’s worldwide gross dollar volume was up by 11%, and purchase transactions increased by 12% in the quarter. Since reporting its earnings, Mastercard Incorporated (NYSE:MA)’s stock price has been up by approximately 11% on November 20.

On November 20, Mastercard Incorporated (NYSE:MA) announced that its joint venture, Mastercard NUCC Information Technology, has received approval to start domestic bankcard clearing activity in China from the People’s Bank of China and the National Administration of Financial Regulation.

Here is what Baron FinTech Fund has to say about Mastercard Incorporated (NYSE:MA) in its Q3 2023 investor letter:

“Performance in Payments was bolstered by gains from Mastercard Incorporated. Shares of global payment network Mastercard were up modestly after reporting a continuation of double-digit earnings growth and resilient payment volumes.”