In the last year, Visa (V) shares tumbled, so this morning’s strong rally is a welcome change. Visa posted fiscal second-quarter results that beat expectations. Revenue jumped to $11.2 billion, while earnings (adjusted) were $3.31.
Visa said it would buy back $20 billion in its stock in the next few years. Expect the report to lift Mastercard (MA) stock today.
The V stock rally might fade later in the day or in the coming days. It needs investors to have confidence that consumer spending will rise in 2026.
Starbucks (SBUX) will open up by around 5.5% in Wednesday morning trade. The firm reported non-GAAP EPS of $0.50. Revenue increased by 8.8% Y/Y to $9.53 billion. The restaurant firm is forecasting fiscal 2026 comparable store sales growth of 5% or more.
SBUX stock is performing well compared to McDonald’s (MCD). MCD stock peaked at $340 in February but closed at $292.39 yesterday.
General Motors (GM) reported a 0.9% drop in revenue to $43.62 billion. Considering the U.S. tariffs hurting trade, GM posted a strong relative performance. Unfortunately, the $1.1 billion loss ($1.19) from the battery-electric vehicle business is discouraging. GM might face competition from the clean energy auto firms like Tesla (TSLA) and Rivian (RIVN).
Consumers might opt for an EV as gas prices at the pumps continue to rise.
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