We continue our popular series, “Is … a Good Stock to Buy in 2025.” Next up is Mastercard (ticker: MA). As far as introductions go, it barely needs one—this company processes transactions in over 210 countries and territories. We’re curious to see how MA shares are performing at the start of 2025. Let’s look at the latest Q4 financial results, check out the stock’s performance, and tackle the big question: Is Mastercard a good stock to buy or better to sell?
Mastercard (MA) Key Market Metrics – February 2025
By mid-February, Mastercard (MA) is trading around $564–$566, showing an 8% increase in just a month and a half of 2025. The company’s market capitalization stands at $514.9 billion. Its P/E (price-to-earnings) ratio is around 40.66, while its beta of 1.10 indicates slightly higher volatility than the broader market.
Financial Results Q4 2024: Key Highlights
Spoiler alert: the last quarter of 2024 was a success. Here are the standout figures:
Net Income (EPS). Adjusted earnings per share reached $3.82, a 20% year-over-year increase. This figure surpassed the Zacks Consensus Estimate by 3.8%.
Revenue. For Q4, revenue hit $7.5 billion, exceeding market expectations by 1.4%. Full-year 2024 revenue was $28.2 billion, up from $25.1 billion in 2023.
Gross Dollar Volume (GDV). Up 12% (to $2.6 trillion), matching analysts’ forecasts.
Capital Turnover and Buybacks. In Q4 alone, the company repurchased 6.5 million shares for $3.4 billion. By the end of January 2025, an additional 1.2 million shares were bought back for $644 million, leaving $14.5 billion worth of buyback potential.
Summing it all up, Mastercard (MA) had a strong close to 2024. Full-year net income reached $14.60 per share, up 19% year over year.
Why Is Mastercard (MA) an Attractive Investment?
Expanding Global Influence. Mastercard (MA) continues to broaden its geographic reach and market share, backed by strong infrastructure and reliable partnerships with banks and major retailers.
Growth in Cashless Transactions. The global trend away from cash has accelerated in recent years. Since Mastercard earns a fee on every transaction, this directly boosts the company’s revenue.
New Partnerships and Innovation. Mastercard (MA) teamed up with Lady Gaga to launch a campaign celebrating her new single “Abracadabra.” The company also isn’t afraid to experiment with blockchain and cryptocurrencies.
Robust Financial Base. With high operating margins and $14.8 billion in free cash flow, Mastercard maintains a balanced approach to buybacks, dividends, and growth investments.
Strong Growth Potential. Management expects revenue to keep growing in 2025, with operating expenses rising in the “low double-digit” range. This suggests a favorable trend even amid potential market volatility.
Potential Risks and Challenges: Is MA a Good Stock to Buy in 2025?
Regulatory Pressure. Mastercard (MA), along with Visa (here is our article: Is Visa a Good Stock to Buy in 2025? February 2025 Review), often faces antitrust investigations and possible fee restrictions. Any tightening could affect profitability.
Competition from Fintech. PayPal, Apple Pay, Google Pay, and cryptocurrency platforms are booming. While Mastercard (MA) remains a clear leader, market shifts could occur—especially if DeFi (decentralized finance) becomes widely adopted.
Macroeconomic Instability. In the event of a recession or economic slowdown, consumer spending tends to drop, reducing the total number of transactions and, consequently, revenue.
Cybersecurity and Technical Outages. Any significant data breach or attack on a payment system can seriously damage a company’s reputation, typically leading to lawsuits and fines from regulators.
Is Mastercard a Good Stock to Buy?
Mastercard (MA) looks like a solid pick for long-term investors in 2025. Its strong financial footing, growing core metrics, new collaborations, and ongoing innovation make it a benchmark in the electronic payments sector.
Still, remember the risks. If short-term volatility doesn’t scare you and you’re prepared to hold the stock for the long haul, current price levels might be a good entry point, given the sector’s promising future. Plus, management continues its buyback programs and pays modest yet reliable dividends.
From our perspective, considering the global shift toward digital payments and the solid performance in 2024, Mastercard (MA) can be viewed as a “HOLD/BUY.”
This article is for informational purposes only and does not constitute financial advice. The content reflects the author’s opinion and should not be interpreted as an investment recommendation.
