Could the Crypto Craze Be in the Cards For Visa?

Visa Inc. (NYSE:V) is one of largest market cap companies in the world. They operate of course primarily as payment technology company but they also facilitate digital payments among consumers, businesses, financial institutions, government institutions, and many other entities.

Visa has a huge portion of the market share, alongside MasterCard (MA) and American Express (AXP). However, PayPal (PYPL) has become a huge threat recently. Toward the end of 2020, PayPal separated itself from the bunch by taking one giant leap into the world of cryptocurrency. PYPL launched a new service that enables its customers to buy, hold, and sell cryptocurrency directly from personal PayPal accounts. This news happened to coincide with a huge gap higher from the volatile cryptocurrency.

It is undeniable that recent events have boosted confidence around digital currency. Although we are still some distance away from cryptocurrency becoming widely accepted as a viable method of payment and currency, individuals and financial institutions are beginning to accept that as a possibility in the future. Now Visa, alongside other credit card companies, is left to decide whether to board the plane early or continue avoiding the risks of navigating the largely unknown crypto market.

Investors could gain some insight around the subject through Visa's upcoming investor event and earnings report, set for after the close this Thursday, Jan. 28. Visa’s leadership team will also host a live webcast discuss financial results and other details about the company.

Visa has a history of muted post-earnings reactions though, so investors ought to temper expectations. In the last eight quarters, V has averaged a post-earnings move of 1.7%, regardless of direction. This time around, the options market is pricing in a slightly larger move of 4.8%.