How will MasterCard perform in 2020, is it a Bubble ready to pop?

An Image of MasterCard performance in 2019MasterCard stock performance

MasterCard shares have been steadily growing in value for all of 2019, and the company has quite a low equity in comparison to other global trading companies. This could be suggestive of a company in a bubble, with stock prices set to drop rapidly in the near future. Despite this, MasterCard plans for the future suggest that the company is set to continue to grow, and therefore may be a lucrative, investment to add to your portfolio for the coming decade.

MasterCards performance in 2019

MasterCard stock has been on a significant path of growth in 2019. Starting the year worth just $188.69, the value has since rocketed to $297.53, as of December 19th 2019. This puts the value of the stock at almost equal to its market high of $300.25. This consistent growth could mean that the price is set to continue to rise as it has in 2019, making it a lucrative and relatively low-risk investment, although as the stock reaches its market high, it may be liable to crash without warning. Although the pattern of the stock is a positive growth one, it has dropped a few times over the course of 2019, to as low as $256, but has always recovered quickly. Competitor PayPal has been less successful, after a drop in August 2019 that led to a plateau in stock price; MasterCard is clearly a more stable, lucrative investment.

How does the equity look?

The assets owned by MasterCard has been consistently growing, to a 2019 level of $25.981 billion. Of this, $6.518 billion was held in cash. Long-term debt for MasterCard has also been growing consistently, reaching $7.735 billion in 2019, as well as a total liabilities value of $21.006 billion in 2019. The increase year-over-year in liabilities may point to an underlying instability, although the company remains solidly in positive equity, at a margin of $4.975 billion. Equity is declining in the company, suggesting that it may run into problems that may affect the positive growth trend in the stock price.

Looking to the future

MasterCard has developed plans in the recent years to modernise payment systems across the globe, particularly business-to-business payment, in a move to automate processes and cut costs for businesses completing international transfers. As well as this, they have spent time developing their efficient method for lending and sending funds, that mean, despite its apparently low equity, that MasterCard is set to become even more synonymous with global banking, and set to continue to grow. Obviously, this predicted long-term growth will potentially increase the value of shares held in MasterCard, and lead to a strengthening on the stock market.

Some other Links for more information

https://www.google.com/search?q=mastercard+stock&oq=mastercard+stock&aqs=chrome..69i57j0l7.3508j1j7&sourceid=chrome&ie=UTF-8

https://www.google.com/search?sxsrf=ACYBGNQTrLRl5XHTz0zLp3b_MM_etI6RMA%3A1577459548320&ei=XB8GXoaZE4qBhbIPvo2DoAY&q=paypal+stock&oq=paypal+stock&gs_l=psy-ab.3..0i131i67j0l9.2840.2840..3613…0.2..0.137.137.0j1……0….1..gws-wiz…….0i71.JtP4dqLwaKc&ved=0ahUKEwiGt5ngjtbmAhWKQEEAHb7GAGQQ4dUDCAs&uact=5

https://www.macrotrends.net/stocks/charts/MA/mastercard/total-share-holder-equity

https://newsroom.mastercard.com/press-releases/mastercard-track-to-modernize-125-trillion-global-b2b-payments-market/

https://www.fool.com/investing/2018/12/24/where-will-mastercard-be-in-5-years.aspx

Thinking of Investing or Trading? Skip years of trial and error and just copy the best!

My name is Joseph Moricca and I run Velox Investments and I have been investing on eToro for over 5 years so I know it like the inside of my own home.

When I started trading I followed the gurus on Youtube and Facebook.

What a MISTAKE to make…

Trading is hard, you have to put in the time to learn it just like any skill!

But what if you could skip the learning and just get those juicy rock-solid results?

Just like the Gurus you could swim in liquid gold jacuzzies with lambos for each day of the week!

Well it still not that easy…

But with Copy Trading on eToro you can get a fantastic education in trading or just copy other people with rock solid performance.

Now this may not be for everyone, but I personally have paid for Michelin star dinners and fantastic holidays to the Algarve from my eToro account.

So use this website as a guide and get started on eToro today!

eToro Disclaimer

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as
well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing
money rapidly due to leverage. 67% of retail investor accounts lose money when trading
CFDs with this provider. You should consider whether you understand how CFDs work,
and whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results.

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe
and therefore are not appropriate for all investors. Other than via CFDs, trading
cryptoassets is unregulated and therefore is not supervised by any EU regulatory
framework.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability
as to the accuracy or completeness of the content of this publication, which has been
prepared by our partner utilizing publicly available non-entity specific information about
eToro.

Leave a Comment

Your email address will not be published. Required fields are marked *

Free eBook and Ultimate eToro Course?