MA Stock Forecast: Surge In Credit Card Usage Justify MasterCard’s High Valuation Ratios

motek 1The article was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology – Senior Analyst at I Know First.


  • Governments around the world are still extending their quarantine/lockdown mandates. This is forcing many people to do costly cash advances on their Mastercard-issued credit cards.
  • We conclude that the ongoing COVID-19 pandemic problem persists as a tailwind for MasterCard. There’s a surge in credit card usage when people are forcibly stuck-at-home.
  • Online shopping and stay-home entertainment are the new normal. As one of the biggest credit card issuers, Mastercard certainly benefits from quarantine edicts.
  • The current pandemic elevated the importance of owning credit cards like those issued by Mastercard. Aside from shopping, credit cards give easy access to quick, no-collateral loans via cash advances.
  • No thanks to COVID-19, I expect Mastercard’s revenue growth for 2020 to beat the previous 5-year 12.35% CAGR.

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