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If You Invested $1000 in MasterCard a Decade Ago, This is How Much It'd Be Worth Now
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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in MasterCard (MA - Free Report) ten years ago? It may not have been easy to hold on to MA for all that time, but if you did, how much would your investment be worth today?
MasterCard's Business In-Depth
With that in mind, let's take a look at MasterCard's main business drivers.
Founded in 1966 and headquartered in Purchase, NY, Mastercard Inc. is a leading global payment solutions company that provides an array of services in support of credit, debit, mobile, web-based and contactless payments, and other related electronic payment programs to financial institutions and other entities.
The company's payment solutions include payment programs, marketing, product development, technology, processing, consulting and information services. It also provides worldwide transaction processing and other payment-related services, which include facilitating the authorization, clearing and settlement process of transactions, as well as processing cross-border and currency conversion transactions.
In May 2001, the company was incorporated as a Delaware stock corporation. Mastercard has one reportable operating segment, Payment Solutions.
The company manages and licenses payment card brands including MasterCard, Maestro and Cirrus. The company generates revenues from the fees it charges its customers for transaction processing and other payment-related services. It also earns revenues by charging customers for assessments based on the gross dollar volume (GDV) of activity on the cards that carry MasterCard brands. Revenues of the company are based on factors such as cross-border volumes, number of transactions, GDV and pricing changes.
The company operates a unique and proprietary global payments network that links issuers and acquirers around the globe to facilitate the switching of transactions, permitting account holders to use a Mastercard product at millions of acceptance locations worldwide. Its core network facilitates an efficient and secure means for receiving payments, a convenient payment method for consumers to access their funds and a channel for businesses to receive insight that is derived from its network. Mastercard authorizes, clears, and settles transactions through its core network for issuer customers in more than 150 currencies and in more than 210 countries and territories.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in MasterCard ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in June 2012 would be worth $8,378.35, or a gain of 737.83%, as of June 10, 2022, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 203.08% and gold's return of 11.67% over the same time frame.
Analysts are anticipating more upside for MA.
Mastercard's shares have outperformed its industry in a year. Its profit levels are rising thanks to increasing consumer spending. Numerous acquisitions are helping it to grow addressable markets and drive new revenue streams. The COVID-19 crisis accelerated the use of electronic payments with much greater adoption of digital and contactless solutions. The situation provides an opportunity for Mastercard's business to expedite its shift to digital mode. Its focus on the Southeast Asia and LatAm markets is expected to intensify. The company is well-poised to gain from steady cash-generating abilities. A strong capital position allows the firm to pursue acquisitions and deploy capital. However, steep operating expenses might stress margins. High rebates and incentives may weigh on net revenues. As such, the stock warrants a cautious stance.
The stock is up 8.64% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 12 higher, for fiscal 2022. The consensus estimate has moved up as well.
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If You Invested $1000 in MasterCard a Decade Ago, This is How Much It'd Be Worth Now
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in MasterCard (MA - Free Report) ten years ago? It may not have been easy to hold on to MA for all that time, but if you did, how much would your investment be worth today?
MasterCard's Business In-Depth
With that in mind, let's take a look at MasterCard's main business drivers.
Founded in 1966 and headquartered in Purchase, NY, Mastercard Inc. is a leading global payment solutions company that provides an array of services in support of credit, debit, mobile, web-based and contactless payments, and other related electronic payment programs to financial institutions and other entities.
The company's payment solutions include payment programs, marketing, product development, technology, processing, consulting and information services. It also provides worldwide transaction processing and other payment-related services, which include facilitating the authorization, clearing and settlement process of transactions, as well as processing cross-border and currency conversion transactions.
In May 2001, the company was incorporated as a Delaware stock corporation. Mastercard has one reportable operating segment, Payment Solutions.
The company manages and licenses payment card brands including MasterCard, Maestro and Cirrus. The company generates revenues from the fees it charges its customers for transaction processing and other payment-related services. It also earns revenues by charging customers for assessments based on the gross dollar volume (GDV) of activity on the cards that carry MasterCard brands. Revenues of the company are based on factors such as cross-border volumes, number of transactions, GDV and pricing changes.
The company operates a unique and proprietary global payments network that links issuers and acquirers around the globe to facilitate the switching of transactions, permitting account holders to use a Mastercard product at millions of acceptance locations worldwide. Its core network facilitates an efficient and secure means for receiving payments, a convenient payment method for consumers to access their funds and a channel for businesses to receive insight that is derived from its network. Mastercard authorizes, clears, and settles transactions through its core network for issuer customers in more than 150 currencies and in more than 210 countries and territories.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in MasterCard ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in June 2012 would be worth $8,378.35, or a gain of 737.83%, as of June 10, 2022, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 203.08% and gold's return of 11.67% over the same time frame.
Analysts are anticipating more upside for MA.
Mastercard's shares have outperformed its industry in a year. Its profit levels are rising thanks to increasing consumer spending. Numerous acquisitions are helping it to grow addressable markets and drive new revenue streams. The COVID-19 crisis accelerated the use of electronic payments with much greater adoption of digital and contactless solutions. The situation provides an opportunity for Mastercard's business to expedite its shift to digital mode. Its focus on the Southeast Asia and LatAm markets is expected to intensify. The company is well-poised to gain from steady cash-generating abilities. A strong capital position allows the firm to pursue acquisitions and deploy capital. However, steep operating expenses might stress margins. High rebates and incentives may weigh on net revenues. As such, the stock warrants a cautious stance.
The stock is up 8.64% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 12 higher, for fiscal 2022. The consensus estimate has moved up as well.