Visa Stock Is Up 4% This Week: What's Going On?

BY Benzinga | ECONOMIC | 01/17/25 11:33 AM EST

Visa Inc (V) shares are trading higher by 4.2% to $317.92 this week following the release of December’s inflation data, as cooling price pressures bolstered hopes of Federal Reserve rate cuts later in 2025.

What To Know: Core inflation's modest increase, coming in below expectations, may reinforce the view that aggressive monetary tightening is waning. This sentiment is especially favorable for Visa, whose business thrives in an environment of robust consumer activity.

Lower interest rates reduce borrowing costs, making credit more accessible and incentivizing consumer spending?a direct driver of Visa's transaction volumes and revenue growth.

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Visa's model is transaction-based, earning fees for every payment processed through its network. A low-rate environment typically fuels economic expansion, increasing retail sales and cross-border transactions, which are particularly lucrative for Visa due to higher associated fees.

Furthermore, reduced rates encourage business expansion and investments in payment technology, potentially accelerating merchant adoption of Visa services.

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How To Buy V Stock

By now you're likely curious about how to participate in the market for Visa – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ?fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the case of Visa, which is trading at $317.25 as of publishing time, $100 would buy you 0.32 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ?go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, V has a 52-week high of $321.62 and a 52-week low of $252.70.

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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