Why Mastercard Stock Is Falling Today
Two of the nation's largest credit card lenders are merging, and some investors are worried about what the deal might mean for (NYSE: MA). Shares of the global payment network processor are down 3% as of 10:30 ET Tuesday.
On Monday, Capital One Financial (NYSE: COF) announced it had made a deal to acquire Discover Financial Services (NYSE: DFS) for $35.3 billion in stock. The purchase is primarily about adding new customers for Capital One, but the company, which currently relies on Mastercard and other payment processing networks, also seems intrigued by Discover's competing network.
In the press release, Capital One noted that Discover has built a "rare and valuable" global payment network with 70 million merchant acceptance points in more than 200 countries. Today, Discover is the smallest of four major U.S.-based payment networks, but Capital One called the deal "a key foundation" in its "quest to build a global payments company."
Source Fool.com
Mastercard Inc. A Stock
The stock is one of the favorites of our community with 50 Buy predictions and 3 Sell predictions.
With a target price of 566 € there is a slightly positive potential of 13.84% for Mastercard Inc. A compared to the current price of 497.2 €.
