During the July 21 episode of CNBC’s Mad Money, host Jim Cramer reviewed Mastercard Incorporated (NYSE:MA) using options trader Bob Lang’s analysis of the daily chart of the stock. Pointing to the company as a premier vehicle for investors seeking to rebalance away from pure tech without sacrificing growth or high-margin processing power, Cramer highlighted its market share and recent price action:
I want to talk about the next chart, which is one of my absolute favorites. Michael Miebach runs it. It’s Mastercard, MA, second most commonly used credit card. 25 to 30% of cardholders have one. Again, you can see that the stock’s gone crazy in the last few weeks. Bouncing like mad off of its June lows. Although, unlike Visa, it still hasn’t taken out its January highs. This is what I mean, by the way, when I say you need to diversify away from some of your tech. Mastercard is a tech company in bank clothing. It’s always been a terrific place to be.
Technical Analysis and Key Price Targets
Examining the daily chart, Cramer highlighted that Bob Lang noted that Mastercard Incorporated (NYSE:MA) has constructed a textbook bullish trend channel marked by a series of higher highs and higher lows since hitting its June bottom. The stock’s moving average convergence divergence (MACD) line generated a buy signal last month, while its relative strength index continues to trend upward without reaching overbought territory. Elevated volume and a rising on-balance volume line further validate the move. Cramer noted that Lang sees that the stock has legs, with primary technical resistance sitting at $573, representing roughly $35 in potential upside toward where the stock traded prior to a January gap down, giving Mastercard Incorporated (NYSE:MA) a clear path to challenge its January highs.
Mastercard’s Position Across Payment Peers
In Cramer’s breakdown of the payment landscape, Mastercard Incorporated (NYSE:MA) occupies a middle ground in cardholder reach while sharing a critical structural moat with market leader Visa Inc. (NYSE:V). While Visa commands the top spot with 60% of cardholders and American Express Company (NYSE:AXP) handles roughly 10% of purchase volume, Mastercard sits solidly in second place with 25% to 30% cardholder penetration. Both Visa Inc. (NYSE:V) and Mastercard Incorporated (NYSE:MA) operate strictly as asset-light processing networks with zero credit exposure, completely insulating them from default losses that direct lenders like American Express Company (NYSE:AXP) must carry on their balance sheets. On the technical side, while Visa has already surged past its January peak, Mastercard is still catching up after bouncing off its June floor, giving investors a high-margin processing stock.
Capital Return Catalysts, Institutional Sentiment, and Short Positioning
Heading into next week’s quarterly earnings release, Cramer emphasized that Mastercard’s aggressive share buybacks could act as the primary catalyst to propel the stock through its upper resistance ceiling:
This one also reports next week, and we know that Mastercard’s been a voracious buyer of its own stock. If they announce any kind of additional capital return, either an increased buyback or dividend boost, well, that could give the stock wings.
On the institutional side, Insider Monkey data shows that while the number of hedge fund holders increased from 150 to 157 between Q4 2025 and Q1 2026, the dollar amount of total holdings decreased by around $1.45 billion. Nevertheless, it is worth noting that some major institutional names such as Arrowstreet Capital, D E Shaw, and Citadel Investment Group increased their position in the stock by 18%, 254%, and 517%, respectively, in the same period. On the short side, with a short interest of 0.88%, the bearish exposure seems significantly low. It highlights investors’ unwillingness to bet against the payment giant.
While we acknowledge the risk and potential of MA 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 MA and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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