Is Visa Stock a Buy?

(NYSE: V) has long been a winner for its investors, but in recent years, the stock has lagged behind the market benchmark S 500. Now, the world's largest payments company is dealing with a new challenge: regulatory scrutiny, as the U.S. Department of Justice accuses Visa of monopolizing debit network markets.

Whenever a company faces allegations of misconduct, investors should take notice, so let's examine the claims against Visa and review its recent financial performance to determine whether its stock is a buy, sell, or hold.

In September, the Justice Department filed an antitrust lawsuit against Visa, alleging that the company used its influence to stifle existing competitors and block the development of new, innovative alternatives. Specifically, the complaint states that Visa processes more than 60% of debit transactions in the U.S., generating more than $7 billion annually in fees. It also claims that Visa unlawfully preserves its monopoly by shielding itself from competition.

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Source Fool.com