Why Mastercard (MA) Jumped 9% on Friday

Updated: Feb 19


Mastercard continues to be a leader in global commerce and 2021 was no different. The financial services corporation beat the street consensus each and every earnings report in 2021 which culminated with a record $5.22 billion in revenue and $2.38 billion in earnings in Q4 2021 (45.6% profit margin). Not bad for a company that just collects a few percent on every transaction that's made with a Mastercard branded debit and credit card.

After the Q4 earnings release, Morgan Stanley raised its price target on Mastercard's stock to $449 which represented a significant upside. In addition, BMO Capital and other investment banks also raised their price target's on Mastercard. To go further, management reiterated their positive outlook on business and travel in 2022 which should bode well for revenue growth. Look at it this way, if Mastercard can reach record revenue and earnings in the wake of the Omicron variant, what can they earn when the variant passes and restrictions ease? It is that exact speculation that catapulted Mastercard shares 9% to reach $382.51 on Friday January 28th, 2021.

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