Why Visa, Mastercard, and American Express Surged Today
Shares of Mastercard (NYSE: MA), Visa (NYSE: V), and American Express (NYSE: AXP) all rose more than 13% on Tuesday, as news of an impending stimulus deal sparked a major rally in the U.S. financial markets.
Mastercard actually cut its guidance on Tuesday. The digital payments titan now expects revenue growth "in the low single-digits range," down from its previous forecast of high single-digit growth. Mastercard is reducing operating expenses to help mitigate the damage, but it suspended its full-year guidance due to uncertainty surrounding the COVID-19 coronavirus pandemic.
"The long-term fundamentals of our business remain strong," the company said in a press release. "However, due to the speed with which the COVID-19 situation is developing and the unknown duration and severity of the event, we are suspending our annual 2020 outlook for both net revenue and operating expense growth at this time."
Source Fool.com
