Mastercard is Priceless.
Been doing some digging around the Credit Card industry. And one question that keeps popping up is why Mastercard is above 400 dollars while Visa is only above 150 dollars. It simply does not make any sense. Visa has far more people using their credit card, Visa is far accepted worldwide than Mastercard, in the past the default rate for Mastercard customers is higher than Visa.
What's going on that is just driving people to buy more Mastercard than Visa?
BTW: for legal purposes, I own zero stock in both those companies.
I'm simply unable to figure out what is going on there. Why is the market saying that the weaker of the two companies is more valuable than the other?
Are you talking about stock price? V is almost 30b bigger than MA in market cap?
Of course V is valuable, everyone wants to take V-cards.
I should have mentioned that I'm talking about Stock Prices of the two companies. Swagon: I totally agree, but that doesn't explain why Mastercard would be above 400, while Visa above 150.
This one went way over your head pal. Along with how to value stocks. You aware that market stock price has nothing to do with how valuable the company is?
Troll? Look at market cap not stock price.
Holy shit, you sound like that chick trying to calculate the amount of time it takes to reach a destination 80 miles away going 80mph.
Visa definitely has a larger market cap, but if you seriously look at the composition of those transactions you might see why the OP has a point. First off, if the average purchase price is $2.38, times approximately 443 million transactions per day, 365 days per year...subtract out some transactions because Chick-fil-a is closed on Sunday...then factor in that sometimes you have to swipe a card twice because it didn't read the first time. Also consider that I usually use my American Express about 3 times a day. Once you calculate all that you will determine that you are probably single.
Regards
Hey, guys. This guy has a point. Better start shorting BRK - surely that share price is not sustainable.
I seriously had a conversation EXACTLY like this yesterday except in terms of currencies. He could not understand that buying power does not convert to a 1/1 ratio, and this guy was supposedly a scrap metal boss.
Guys one of my stocks split. Management has cut my shares value in HALF!!!!!
This is brutal. I think you guys just convinced some freshman that finance isn't for him.
I used to think you were just a troll, but it is now clear to me that you are a man with a heart of unthinkable depth. I, too, weep for this loss
Still doesn't anwser the question, why are people buying up Mastercard more than Visa?
Oh.
My.
Fucking.
God.
are you mad flakey poo?
I hope this is a troll, because there is no saving this faggot.
finance is hard for peeplez that cant reads or addz
Would someone put this retard out of his misery?
Ok, here goes. I'm not an investment banker at Goldman or anything, so this could be wrong, but maybe these questions are the right ones.
Visa's market cap is $79.5 B, and the share price is $118. That means there are around 670 million shares outstanding.
MasterCard's market cap is $54.4 B, and the share price is $430. That means there are around 125 million shares outstanding.
The market cap of V is greater than the market cap of MC. That means ___?
The Price/Earnings ratio of V is 21, and the P/E of MC is 28. That means___?
And, for extra credit, one share of MC is worth $430. How much is an equivalent share of Visa's ownership worth?
This guy has a future as a UBS quant and I love feeding trolls.
LOL +1
The best part of this is his legal disclaimer. Thank god I can act on your wisdom knowing that you won't illegally benefit from the massive price change caused by your post on WSO
OP, I'll spell it out for you since you already seem to have gotten enough grief (well not really, but you know). Visa has many more shares outstanding than Mastercard does. Because there are more total shares, even though each share is worth less, the company is worth more. Every company has a different number of shares of common stock for the public to buy.
Example: I have a $10 bill and I split it up into two $5 bills and give them to two people, so each person has one share worth $5. I then have a $20 bill and split it up and give $4 to five other people, so each person has $4. Even though everyone I gave part of the $20 to has only $4 (the stock price), $20 is worth more than $10. In this case, Visa is like the $20 bill that five people (the number of shares outstanding) have $4 of (the stock price), whereas Mastercard is like the $10 bill that two people (the number of shares outstanding) have $5 of (the stock price), which is why the stock price of Mastercard is higher than that of Visa ($5>$4).
Hahahahahahahahahahahahaha
Holy shit, this made my morning. Hey OP, I've got a shiny 100 dollar bill for three of your 50s.
Durrrr, sounds fair. Hundreds are worth more than 50's right?
Future Head of Corporate Development at Facebook
Extremely successful trolling job
So after all that, no one can anwser the basic question: Why is are a lot of people purchasing Mastercard rather than Visa?
just stop. delete your account.
Dude, read my post. It literally can't be explained in an easier way than I tried to explain it to you. Stock price means nothing by itself. Stock price * number of shares = company value. Visa has more shares so even though the price is lower, the company value is higher because there are many more shares of Visa than Mastercard. You're comparing stock prices - don't do that because they mean nothing. You compare company market values, and stock price is just one multiple that goes into getting that number.
But Visa can get more people into America and expand the market!
Demand for visa shares > demand for MC shares Supply for visa shares >>> supply for MC shares Therefore, MC shares cost more money than Visa shares.
Is that dumbed down enough for you?
i hav done some resarch on this to. my granma has a master card and some time it does not work at resturants. then i see the stock price is like thre times higher then VISA!! i get relly mad i tink that mastercard is most expensiv stock in the world. it is un-exaplainable, the only conclusin i have come up with is dat the eluminoti and satan are controlin mastercard.
Despite the hilarity of this thread, I feel compelled to say that there is no appreciable difference between the 2.
The satan and illuminati is by far the best explaination on this thread. Thank you. :DDD
Visa is priced in pounds and Mastercard is priced in canadian dollars bro, do your research.
Bahhaha, DoubleDip, do you have twitter? If you don't, please get one so we can all follow you and realize just how lucky we are to not be complete fucktards.
I teach mentally challenged kids who would get this quicker than you did brah. And +1 to cphbravo96. I seriously laughed at that one.
Common you guys obvious troll is fucking obvious as fuck. 3/10
Read some of his other posts. I don't think he is trolling. I think he really is retarded.
Bulge bracket explained it well but I think op needs another genuine attempt to explain it.
Company A issues 100 $2 shares = is worth $200 in total value = market capitalization = MC Company B issues 500 $1 shares = is worth $500 in total value = market capitalization = Visa
You have $50 to invest. You can buy 25 MC at $2 per shares or 50 Visa shares at $1
Which one you buy depend on which shares you think will go up the most, that is, which company has the most up side potential. Some people think it's MC so that's why they buy MC shares even though they cost more and the company is smaller in market cap.
This should clear some things up.. I bet he watches Mad Money every night.
http://www.wallstreetoasis.com/blog/when-your-on-a-roll-your-on-a-roll
The "longers?" Thank you for tearing this guy to shreds y'all. Made my day.
Ok OP, so it goes like this:
Visa has a market cap of yippidy ga ga boo boo, skippidy dup la boo, masterbate mamam boo boo ga ma ga.
Card?
Troll Rookie of the Year.
You not know that when people sell shares the stock price goes up?
THIS IS THE FUNNIEST THING I'VE EVER READ ON WSO!!!
Wait Wait Wait, I am a rookie so please help me out if I don't understand this.
So Visa is more valuable than mastercard?
I am sorrry but ALL of you are wrong. ITs a FACT!
MC has a higher stock price! and people want to buy mastercard! ITs a FACT! and mastercard's ticker is twice as long as visa's and you have to pay roughly $1.3 bn a year for an additional letter, similar to the process of when you buy your license plate! ITs a FACT! They also have two seats on the exchange floor. Its a fact! They usually give them to Mortimer and Randolph Duke, according to bloomberg.
But when determining MC's values using an asset valuation, their IP is at least double that of Visa's , due mainly to their sponsorship rights to UEFA Champions League AND the 2011 Rugby World Cup.
Finally, MC had to pay $22 bn to use 2 of the 5 olympic circles in their logo. The PV of that naming right brings the Enterprise value of MC to at least 1.5x greater than VISa
$1.3B per letter for the ticker???
Citigroup got a deal!!!!
They need it.
Back to finance 101
LOLLLLLLLLLLLLLLLLLLL
You, my friend are a dum-dum. I guess Google is bigger than Apple huh..
Looks like everyone here is trolling. :DDD
Cracker?
Troll city
you guys are getting trolled.
I love getting trolled. This was a good one.
Who's trolling?
obvious troll
He's just such a good troll that it comes natural. Therefore he is oblivious of it. A true natural talent. Welcome stranger.
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