ADS - Visa's disappointing outlook weighs on rival Mastercard credit card stocks

Credit card networks and issuer stocks drop after Visa (V -5.4%) said it doesn't expect cross-border travel to return to 2019 levels until the summer of 2023. The company expects Q1FY2022 net revenue growth in high teens, with client incentives as a percentage of gross revenue likely in the 26-27% range, in line with Q4FY2021, Vice Chairman and CFO Vasant Prabhu said during the company's earnings call. "Looking four quarters out projecting growth, revenue growth poses the greatest challenge, and is significantly dependent on the pace of the cross-border travel recovery," as well some other factors, he said. Rival card network Mastercard (MA -6.2%) also dips in early afternoon trading. Card issuers Capital One Financial (COF -7.5%), Alliance Data Systems (ADS -5.7%), Discover Financial (DFS -5.3%), and Synchrony Financial (SYF -3.5%) feel the pain as well. Also caught up in the downdraft are payment processors Fiserv (FISV -12.2%), which reported

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Visa's disappointing outlook weighs on rival Mastercard, credit card stocks