Charged up over MasterCard

Filed under: Newsletters, MasterCard Inc'A' (MA), Stocks to Buy

"In this recession, consumers are spending less per purchase on their credit cards -- but that hasn't slowed down the credit card company MasterCard (NYSE: MA)," says Paul Tracy.

In his The StreetAuthority Market Advisor, he points out, "In the second quarter, MasterCard's net income grew by +26%, beating Wall Street's expectations by a significant margin." Here's his review.

"MasterCard makes its money from the fees it charges merchants and the banks that issue its cards. The issuing banks make money by charging consumers interest.

"And as we've seen, the banks can lose money when consumers default on their credit card debt. But MasterCard's fee-based business model has been relatively resilient during the downturn.

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Charged up over MasterCard originally appeared on BloggingStocks on Thu, 03 Sep 2009 17:00:00 EST. Please see our terms for use of feeds.

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