Visa & Mastercard: Seriously?

Okay, so everyone’s all excited about the S&P 500 being up 14.9%? Fine. Whatever. But Visa (V 3.00%) and Mastercard (MA 1.00%)… down slightly? It’s just… irritating. Everyone’s running around thinking the economy’s a roaring bonfire, and these two, the guys who actually facilitate everything, are lagging? It doesn’t compute. And now this talk about a 10% cap on credit card interest rates? Honestly, it’s the principle of the thing. Like, who even thinks of that? It’s not about the money, it’s about the sheer… illogicality of it all.

They reported earnings on January 29th. Big deal. Everyone’s praising “solid consumer spending.” Solid? What does that even mean? It’s just a word people throw around. Mastercard’s revenue up 18%, Visa 15%? So what? They’re supposed to be up more! It’s like ordering a pastrami on rye and getting… slightly more than half a pastrami. You just want what you paid for, is that so much to ask?

And these operating margins? 55.8% for Mastercard, 61.8% for Visa? It’s obscene! They’re practically printing money. And then they have the audacity to brag about it. It’s like, “Oh, we made a lot of money off your purchases.” Well, congratulations. You’re a business. That’s what you’re supposed to do. It’s not exactly rocket science.

They’re saying they’re “somewhat recession-resistant” because people will still swipe their cards. Of course they will! What are people going to do, start bartering for groceries? It’s just stating the obvious. And this whole thing about “global spending” growing? It’s just a self-fulfilling prophecy. They process the transactions, so naturally, spending goes up. It’s circular reasoning! It’s infuriating!

Then they tell you they’re buying back stock and paying dividends. Oh, how generous! They’re giving back a tiny fraction of the money they made off our collective spending. It’s like returning a defective toaster after three years. You appreciate the gesture, but it doesn’t really solve anything. They bought back billions of dollars worth of stock. Billions! And they expect us to be thrilled? It’s just… excessive.

And the yield is less than 1%? Less than 1%? They’re practically daring you to find a better return somewhere else. It’s like offering a complimentary mint with a $1000 bill. It’s insulting. They could easily increase the dividend yield to 3% or 3.1% if they weren’t so obsessed with buying back stock. It’s just… baffling.

Look, I’m not saying these are bad companies. They’re not. They’re… efficient. Ruthlessly efficient. But they’re also… smug. They just assume everyone will keep swiping their cards, and they’re probably right. And that’s the problem. There’s no incentive to improve, to innovate, to… just be a little bit more considerate. It’s just… disheartening.

So, are they “foundational stocks” to build a portfolio around? Maybe. If you’re okay with supporting a system that subtly encourages overspending and prioritizes stock buybacks over, say, employee benefits. I’m just saying, there’s a certain… lack of principle that bothers me. It’s not about the money. It’s about the principle of the thing.

2026-02-01 06:12

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