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Here's How Much a $1000 Investment in Visa Made 10 Years Ago Would Be Worth Today
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Visa (V - Free Report) ten years ago? It may not have been easy to hold on to V for all that time, but if you did, how much would your investment be worth today?
Visa's Business In-Depth
With that in mind, let's take a look at Visa's main business drivers.
Incorporated in 2007 as a Delaware stock corporation and headquartered in San Francisco, CA, Visa Inc. operates retail electronic payments network worldwide. The company went public in March 2008 via an initial public offering (IPO).
Though Visa has evolved and grown over the course of the last six decades:
It provides transaction processing services (primarily authorization, clearing and settlement) to financial institutions and merchant clients through VisaNet, its global processing platform.
It offers a wide range of Visa-branded payment products, which its financial institution clients would develop and offer core business solutions, credit, debit, prepaid and cash access programs for account holders (individuals, businesses and government entities).
It provides other value-added services to its clients including fraud and risk management, debit issuer processing, loyalty services, dispute management, digital services like tokenization as well as consulting and analytics.
It manages and promotes its brands to the benefit of its clients and partners through advertising, promotional and sponsorship initiatives with the Olympic Games, FIFA and the National Football League among others.
In recent years, the company has evolved its organization to accelerate the migration of digital payments across new channels including ecommerce, mobile and wearables.
The company has adopted new digital payment and security technologies, such as contactless and tokenization.
It has accelerated the pace of change in digital payments by making application programming interfaces (APIs) available in an effort to increase access to its network, products and services, offering innovation opportunities at its 10 global innovation network locations and building partnerships with new players, such as financial technology companies, commonly known as fintechs.
The primary revenue segments are: Service revenues (36% of gross revenues in fiscal 2020), Data Processing revenues (34%), International Transaction revenues (25%) and Other revenues (5%).
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Visa ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in July 2011 would be worth $11,188.99, or a 1,018.90% gain, as of July 15, 2021. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 234.20% and the price of gold went up 10.21% over the same time frame.
Analysts are anticipating more upside for V.
Visa’s stock has outperformed the industry year to date. Numerous acquisitions and alliances paved the way for long-term growth and consistently drove revenues. Visa continues to invest in technology to further boost its already leading position in the payments market. Shift in payments to the digital modes is a boon too. The coronavirus vaccine development and the gradual revival of consumer confidence will drive spending, expanding business volumes in turn. A strong balance sheet boosts investment. The stock has seen the Zacks Consensus Estimate for current-year earnings being revised upward over the past 30 days. However, high operating expenses stress the operating margins. Ramped-up client initiatives will dent the top line. Also, a sluggish cross-border business due to the pandemic looms on.
Over the past four weeks, shares have rallied 7.14%, and there have been 3 higher earnings estimate revisions in the past two months for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in Visa Made 10 Years Ago Would Be Worth Today
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Visa (V - Free Report) ten years ago? It may not have been easy to hold on to V for all that time, but if you did, how much would your investment be worth today?
Visa's Business In-Depth
With that in mind, let's take a look at Visa's main business drivers.
Incorporated in 2007 as a Delaware stock corporation and headquartered in San Francisco, CA, Visa Inc. operates retail electronic payments network worldwide. The company went public in March 2008 via an initial public offering (IPO).
Though Visa has evolved and grown over the course of the last six decades:
It provides transaction processing services (primarily authorization, clearing and settlement) to financial institutions and merchant clients through VisaNet, its global processing platform.
It offers a wide range of Visa-branded payment products, which its financial institution clients would develop and offer core business solutions, credit, debit, prepaid and cash access programs for account holders (individuals, businesses and government entities).
It provides other value-added services to its clients including fraud and risk management, debit issuer processing, loyalty services, dispute management, digital services like tokenization as well as consulting and analytics.
It manages and promotes its brands to the benefit of its clients and partners through advertising, promotional and sponsorship initiatives with the Olympic Games, FIFA and the National Football League among others.
In recent years, the company has evolved its organization to accelerate the migration of digital payments across new channels including ecommerce, mobile and wearables.
The company has adopted new digital payment and security technologies, such as contactless and tokenization.
It has accelerated the pace of change in digital payments by making application programming interfaces (APIs) available in an effort to increase access to its network, products and services, offering innovation opportunities at its 10 global innovation network locations and building partnerships with new players, such as financial technology companies, commonly known as fintechs.
The primary revenue segments are: Service revenues (36% of gross revenues in fiscal 2020), Data Processing revenues (34%), International Transaction revenues (25%) and Other revenues (5%).
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Visa ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in July 2011 would be worth $11,188.99, or a 1,018.90% gain, as of July 15, 2021. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 234.20% and the price of gold went up 10.21% over the same time frame.
Analysts are anticipating more upside for V.
Visa’s stock has outperformed the industry year to date. Numerous acquisitions and alliances paved the way for long-term growth and consistently drove revenues. Visa continues to invest in technology to further boost its already leading position in the payments market. Shift in payments to the digital modes is a boon too. The coronavirus vaccine development and the gradual revival of consumer confidence will drive spending, expanding business volumes in turn. A strong balance sheet boosts investment. The stock has seen the Zacks Consensus Estimate for current-year earnings being revised upward over the past 30 days. However, high operating expenses stress the operating margins. Ramped-up client initiatives will dent the top line. Also, a sluggish cross-border business due to the pandemic looms on.
Over the past four weeks, shares have rallied 7.14%, and there have been 3 higher earnings estimate revisions in the past two months for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.