Is Mastercard Stock a Buy?
Not even the best fintech stock in the decade after the Great Recession of 2008 to 2009 could hide from the coronavirus. Mastercard (NYSE: MA), the world's second largest dedicated digital payments platform, has been hit hard by the contagion. At its lowest point last month, the stock was down over 40% from its all-time high, although as of this writing, it has recovered some of those losses.
Nevertheless, the coming economic downturn means less movement of money. For a toll-booth business like Mastercard that earns the bulk of its revenue by charging a small fee for processing transactions, that means leaner times lie immediately ahead.
Though the world has undeniably changed a great deal because of the COVID-19 pandemic, Mastercard is in good shape and should emerge stronger than ever. The short-term outlook isn't great, and shares remain priced at a premium, but the long-term reasons for owning this war-on-cash leader are unchanged.
Source Fool.com
