Why Mastercard and Visa Climbed Today

Credit card giants Mastercard and Visa saw their shares rise on Thursday as investors cheered their strong quarterly earnings reports.

So what 

In the first quarter, Mastercard had revenue of $5.2 billion. Its operating leverage was once again on full display. The digital payments giant's operating income increased 34% to $3 billion. Mastercard's earnings per share were boosted by stock purchases.

The total dollar amount of transactions processed on Mastercard's payments network increased by 17%. Demand for travel rebounded as cross-border volume rose by 53%.

Cross-border travel is up for the first time since the beginning of the Pandemic and ahead of expectations, according to CEO Michael Miebach.

The image is from the same source.

The results of Mastercard and Visa were met with applause from investors. In its fiscal second quarter, which ended on March 31, Visa's revenue grew 25% to $7.2 billion. Its adjusted net income and earnings per share increased by 30%.

The global economic recovery that began in the middle of last year continued, according to Visa CEO Alfred Kelly.

Now what

Although the economy is facing many challenges, including war in Europe, supply chain disruptions and inflation, the world is moving forward. Digital transactions and away from cash are on the rise. Mastercard and Visa stand to make a lot of money from this shift.

Joe Tenebruso doesn't have a position in any of the stocks. Mastercard and Visa are recommended by The Motley Fool. There is a disclosure policy for The Motley Fool.