MasterCard Inc (MA) stock dropped after the reports about the potential influence of the coronavirus outbreak on the company’s revenue. The stock price in the pre-market is 0.85.Mastercard Inc (NYSE: MA) stock dropped sharply on Monday after the bell rang. The 4% drop was attributed to the report given by the company regarding its 2020 revenue. According to the company, cross border travel and the cross border e-commerce growth that is being affected by the ongoing coronavirus, the COVID-19 outbreak in the world will hit negatively the company’s net revenue for the year 2020.What Mastercard Says about Its StockThe credit card company stated on Monday informing their customers and investors that its first-quarter revenue growth will be around 2-3% less than the previous guidance
Topics:
Steve Muchoki considers the following as important: Business, coronavirus, mastercard, mastercard stock, mastercard stock price, News, Stocks, Wall Street
This could be interesting, too:
Bitcoin Schweiz News writes Reich mit Aktien! Was Finanz-Influencer Tim Schäfer besser macht als die meisten
Temitope Olatunji writes X Empire Unveils ‘Chill Phase’ Update: Community to Benefit from Expanded Tokenomics
Bhushan Akolkar writes Cardano Investors Continue to Be Hopeful despite 11% ADA Price Drop
Bena Ilyas writes Stablecoin Transactions Constitute 43% of Sub-Saharan Africa’s Volume
MasterCard Inc (MA) stock dropped after the reports about the potential influence of the coronavirus outbreak on the company’s revenue. The stock price in the pre-market is $320.85.
Mastercard Inc (NYSE: MA) stock dropped sharply on Monday after the bell rang. The 4% drop was attributed to the report given by the company regarding its 2020 revenue. According to the company, cross border travel and the cross border e-commerce growth that is being affected by the ongoing coronavirus, the COVID-19 outbreak in the world will hit negatively the company’s net revenue for the year 2020.
What Mastercard Says about Its Stock
The credit card company stated on Monday informing their customers and investors that its first-quarter revenue growth will be around 2-3% less than the previous guidance allotted.
In the statement, the company said that ‘if the impact is limited to the first quarter only, then we expect our annual year-over-year net revenue growth rate would be at the low end of the low-teens range’.
Mastercard has enjoyed a good reception in the market for the past ten years, it has seen its stocks move from trading below $50 to trade above $300. The shares have been doing well as of the past two months of 2020, where they broke the previous strong resistance level at $290.
As the market closed last week, the shares were doing quite well, where they were testing their all- times high $340 per unit. Having closed the week at a high note, the stock price and the company will have to prove to the investors that the ongoing coronavirus outbreak will not bleed it completely.
However, using the technical tools and indicators in the higher time frame, the shares are still in the up-trend movement. This might not be the case if the coronavirus that is spreading to other countries like a forest fire continue negatively affecting Mastercard’s business.
How Coronavirus is Chocking the Mastercard (MA) Stock Price
Mastercard is a company that relies on its customers’ to transact to make profits, the more countries are joining China in total lock-down to control the coronavirus, the more its daily business is being hampered.
Most international airlines have stopped their travel to and from China, as more countries get hit by the coronavirus, more business restrictions will follow. The unpredictable nature of the virus makes it even hard for the company and investors to predict how it will evolve in the near future.
This has caused the investors to lose faith in the company hence the nosedive of the Mastercard (MA) stocks. According to the company, if the disease gets under control in the cause of the year, then the MA price may stabilize and even though not fully, the net revenue will be lower with a small margin compared to the previous ones.
A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery!