MA Stock. is a global payments technology company that offers payment processing solutions to businesses and consumers worldwide. The company’s stock is listed on the NYSE with the symbol MA.
Mastercard Inc, Inc. Second Quarter 2023 Financial Results
MA Stock, a global payments technology company, reported strong financial results for the second quarter of 2023. The company earned $2.8 Billion in net income and $3.00 in diluted EPS, $2.7 Billion in adjusted net income, and $2.89 in adjusted diluted EPS, excluding special items.
The company’s net revenue rose by 14% year-over-year, or 15% on a currency-neutral basis, to $6.3 Billion, fueled by higher spending at home and abroad. The company’s gross dollar volume and purchase volume increased by 12% and 14%, respectively, on a local currency basis, as consumer and business activity rebounded from the pandemic.
The company’s net revenue increased by 14%, or 15% on a currency-neutral basis, for the second quarter of 2023, driven by its payment network and its value-added services and solutions.
The company’s payment network net revenue increased by 13%, or 14% on a currency-neutral basis, supported by higher gross dollar volume, cross-border volume, and switched transactions.
The company’s value-added services and solutions net revenue increased by 16%, as reported and on a currency-neutral basis, driven by the growth of its cyber and intelligence solutions and the demand for its consulting and marketing services. The company’s operating expenses increased by 5%, or 12% excluding special items, primarily due to higher personnel costs.
The company’s other income was favorable $268 Million, or $29 Million excluding special items, primarily due to net gains on marketable securities and higher investment income. The company’s effective tax rate was 23.2%, or 23.9% excluding special items, higher than the prior year due to a discrete tax expense related to foreign tax legislation in Brazil and a U.K. statutory tax rate increase.
The company’s customers had issued 3.2 Billion Mastercard and Maestro-branded cards as of June 30, 2023.Iponweb acquisition. The company also expects adjusted EBITDA margin to be around 28% of Contribution ex-TAC for the full year of 2023.
MA stock price is trading in an uptrend in both one-day and weekly timeframes. However, its momentum slowed down for a while. Right now, it took support from the 50 SMA. Currently, the price is above the 50 and 200 SMAs which is a positive sign.
RSI is currently at 49.68 points and the 14 SMA line is at 57.84 points and heading downward, indicating weakness in momentum.
The MACD is also heading downwards and is below the signal line. The MACD also indicates a weakness of momentum.
SUMMARY
Mastercard reported strong Q2 2023 results, driven by its payment network and its value-added services and solutions. The company’s spending volume also increased, as consumer and business activity rebounded from the pandemic. The stock price is in an uptrend, but its momentum is weak. The stock price is above the 50 and 200 SMA but may face resistance at the $400 level. The RSI and MACD indicators are showing a possible downward trend as of now. The stock price needs to break above the $400 level to start a new uptrend.
Support and Resistance Levels for MA stock
Support levels: $382.00.
Resistance levels: $406.29.
Disclaimer
The information provided in this article is for educational purposes only and does not constitute investment advice. Technical analysis is based on historical patterns and trends and does not guarantee future results. Trading involves risks and you should only invest what you can afford to lose.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/08/04/ma-stock-price-prediction-will-mastercard-q2-elevate-its-price/