During the Tuesday episode of Mad Money, host Jim Cramer discussed the major credit card networks as he noted that consumer spending remains resilient. He began by highlighting the broader economic data and noted that roughly 81% of Americans hold a credit card, averaging three to four cards per consumer, with cardholders using about 29% to 30% of their available balance. Even though the median household holds approximately $8,000 in cash, consumers continue to prefer credit over drawing down savings. Explaining how these consumer habits feed into the major card networks, Cramer noted:
All this is to say that the three big credit card companies, Visa, Mastercard, and American Express have a tremendous read on the state of the economy, and after a very rocky first quarter, these stocks have been steadily chugging higher since April.
Examining the daily chart of market leader Visa Inc. (NYSE:V) with the help of Bob Lang’s (founder of Explosive Options) analysis, Cramer highlighted how the stock’s recent technical breakout contradicts theories of a struggling consumer:
Why don’t we start with Visa? That’s the most used credit card. 60% of cardholders have one… Check out the daily chart. Visa’s been roaring higher on terrific relative strength lately. I mean, this is not what Visa’s chart looks like when the consumer’s being squeezed. When you look at the moving average convergence divergence, that’s the MACD… That’s an important momentum indicator that can detect changes in the stock’s trajectory before they happen… This isn’t a coincidence; this is predictive. It made a bullish crossover mid-June. That’s what really got people excited… And it’s one of the most positively reliable patterns there is out there. Sure enough, the stock’s been on fire ever since the cross…
Cramer also pointed to the volume indicator at the bottom of the chart to highlight the influx of big-money accumulation:
Lately, Visa’s on-balance volume has been spiking, and that’s a strong sign that big institutions can’t get enough of this one. This is rather extraordinary how much they love it… Now, remember, unlike American Express, Visa and Mastercard have no credit exposure. They don’t have losses if you don’t pay. And that’s why they’re so beloved by mutual funds.
Photo by Artem Podrez on Pexels
Visa’s Moat in the Global Payment Ecosystem
Cramer pointed out that as the dominant player in the industry, whose product is held by 60% of cardholders, Visa Inc. (NYSE:V) leads peer Mastercard Incorporated (NYSE:MA) (25% to 30% cardholder reach) and American Express Company (NYSE:AXP). He pointed out that while American Express acts as a direct lender taking on balance-sheet credit risk when cardholders default, Visa and Mastercard operate purely as a high-margin tollbooth for digital transactions, which grants them immunity from credit losses.
From a technical perspective, Cramer highlighted that Lang noted that Visa Inc. (NYSE:V) has established a textbook bullish trend channel marked by a series of higher highs and higher lows. Following the mid-June MACD buy signal and the massive spike in on-balance volume, the stock has moved very close to its all-time high. Heading into its earnings report next week, the $355 stock carries a near-term price target of $400 by the fall, according to Lang. Furthermore, Cramer commented that after rolling out a $20 billion share repurchase program last quarter, any announcement of an expanded buyback plan during earnings could serve as an immediate catalyst to propel shares to new highs.
Institutional Ownership and Short Positioning
Insider Monkey’s database confirms significant institutional backing for Visa Inc. (NYSE:V), with the stock consistently ranking among the most widely held mega-cap stocks across elite hedge funds. However, between the first quarter of 2026 and its preceding quarter, the hedge fund sentiment dropped slightly. In Q1, a total of 181 hedge funds tracked by Insider Monkey held positions in the stock, compared to 184 in the previous quarter. Respective total invested value also declined sequentially by around $7.2 billion. Nevertheless, the company’s major hedge fund holders such as TCI Fund Management and Viking Global increased their positions by 10% and 51%, respectively.
Bearish bets against the company remain remarkably low, as Visa Inc.’s (NYSE:V) short interest accounts for just 1.09% of its floating shares. The minimal shorting activity signals that Wall Street sees little incentive to bet against the stock.
While we acknowledge the risk and potential of Visa Inc. (NYSE:V) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than V and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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