Top 5 Stocks to Sell Now According to Billionaire Dan Loeb

4. Visa Inc. (NYSE:V)

Number of Hedge Fund Shareholders: 146

Dan Loeb also dumped another payment processor in Q4, though a much more established one in Visa Inc. (NYSE:V), selling out of his 1.4-million share position in the company. Hedge fund ownership of Visa fell by 15% during 2021.

Unlike Paysafe, Visa Inc. (NYSE:V) is still generating impressive net revenue growth, as that figure rose by 24% year-over-year during the company’s fiscal Q1 2022, while non-GAAP EPS grew by 27%. Visa has grown its payment transactions volume by 26% over the past two years, topping $60 billion during the quarter for the first time.

Polen Capital’s Polen Global Growth fund is still a big fan of Visa Inc. (NYSE:V) saying in its Q4 2021 investor letter that it expects mid-teens or greater EPS growth for the foreseeable future:

“Visa is also experiencing COVID-related pressures, primarily due to rolling lockdowns and the fact that international travel is yet to return to pre-pandemic levels. The lack of travel relative to before the pandemic has specifically impacted Visa’s cross-border business, which represents roughly 10% of payment volume, but approximately 25% of gross revenues. Like Autodesk, how the near-term unfolds is hard to predict, but we are confident that international travel will return eventually.

At less than 30x earnings, we don’t think we’re paying much for this eventuality. Further, despite continued advances in fintech and the increased popularity of cryptocurrencies, Visa and MasterCard continue to invest to protect and even expand their competitive advantages. Fintech remains a dynamic space, but we continue to believe that Visa and Mastercard’s scale and “network of networks” approach provides both companies a formidable competitive position within the payments ecosystem. We expect mid-teens or greater earnings per share growth for many years to come.”