Visa stock may decline 35% due to market sell-off and recession fears

From Nasdaq: 2025-03-30 22:47:00

Visa stock (NYSE: V) could see a 35% or more decline due to market sell-off and recession fears. President Trump’s tariffs and inflation worries may impact Visa’s consumer spending and international travel volumes. Investors should consider diversifying for reduced volatility. Visa stock has been resilient in past downturns, but risks remain.

Higher prices from tariffs may lead to reduced consumer spending, impacting Visa’s transaction volumes. A recession could further weaken consumer spending and corporate budgets, hurting Visa’s revenues and margins. Economic uncertainty and global tensions could slow travel, impacting Visa’s high-margin cross-border payments. Visa faces risks from the current economic climate.

Visa stock has been resilient in past downturns compared to the S&P 500. How low could the stock go in another recession? Visa stock fell 24.5% during the 2022 inflation shock but fully recovered. In 2020, the stock fell 36.4% during the pandemic but also recovered. Visa stock has shown resilience in past crises.

At $340 per share, Visa (V) trades at 31x 2025 earnings, appearing expensive. Revenue growth projections are modest at 10% annually for FY’25 and FY’26. Visa faces antitrust scrutiny, accused of operating a monopoly in the U.S. debit market. Investors should consider the stock’s premium valuation and regulatory risks. 1. The stock market reached record highs today, with the S&P 500 closing at 3,500 points for the first time ever. This milestone comes as investors remain optimistic about a potential coronavirus vaccine and economic recovery.

2. In other news, the unemployment rate dropped to 8.4% in August, down from 10.2% in July. This marks the fourth consecutive month of improvement in the job market, as more businesses continue to reopen and hire back workers.

3. Tech giant Apple unveiled its latest products at a virtual event, including a new Apple Watch Series 6 and iPad Air. The company also announced a new subscription service called Apple Fitness+, which offers virtual workout classes for users.

4. Hurricane Laura made landfall in Louisiana as a Category 4 storm, causing widespread damage and power outages. The storm brought heavy rains and strong winds, leading to at least 16 confirmed fatalities and billions of dollars in estimated damages.



Read more at Nasdaq: Will Visa Stock Decline 35% On Recession Concerns?