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New York Markets After Hours

Dec. 2, 2021, 4:42 p.m. EST

Visa stock notches best day in a year as company sees travel-related spending improve

By Emily Bary

Visa Inc. shares had their best trading day in more than a year after the company said that it saw improved cross-border spending trends now that more countries have relaxed travel-related restrictions.

Shares of the payment-technology company rose 4.3% in Thursday’s session, making for their largest single-day percentage gain since Nov. 9, 2020, when the stock increased 7.2%. Shares of rival Mastercard Inc. (NYS:MA) rose 4.5% Thursday.

Visa (NYS:V) disclosed in a late-Wednesday filing that its November monthly cross-border volumes when excluding transactions between European countries showed an 11-point improvement versus October and reached 106% of 2019 levels. “Many countries reopened borders and relaxed restrictions at the beginning of November, especially in Asia and Latin America,” the company noted in its filing with the Securities and Exchange Commission.

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The U.S. border opened Nov. 8, and Visa saw inbound card-present cross-border spending increase about 25 points above October levels in the week that ended Nov. 30. Card-present volumes typically represent in-person spending, while cross-border volumes refer to those in which people are making purchases in countries other than where their cards were issued.

The company’s “healthy” commentary on U.S. card-present spending “validat[ed] our thesis that spending quickly follows border re-openings,” wrote Barclays analyst Ramsey El-Assal, though he also wrote that “these numbers don’t reflect potential future softness in travel related to omicron.”

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Visa noted that payment volumes in international markets were up “several points from October levels in most countries,” calling out “notable” positive spikes in India, Australia and New Zealand.

Visa saw its U.S. payments volume in November reach 133% of 2019 levels, which the company said was “flat with October.” The company saw U.S. credit volumes increase 3 points from October, while debit volumes dipped 4 points.

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Shares of Visa have fallen 5.2% over the past month, as the Dow Jones Industrial Average (DOW:DJIA) has recorded a 3.9% drop.

Link to MarketWatch's Slice.