MasterCard Entertains Crypto and IBM Delivers Solid Earnings
MasterCard doesnโt feel threatened by new-age fintech. It has epic brand power and epic network effects, but itโs also not standing still. Itโs signed up to a partnership with Wirex, an app that lets people trade Bitcoin and other cryptos, to allow the Wirex card on its network.
MasterCard isnโt taking a big risk on cryptocurrencies here, itโs just said โyesโ to scalping transaction fees on cryptocurrency transactions, if there happen to be many on Wirexโs new card. The development of the card is paid for on Wirexโs side. Wirex gets most of the upside.
MasterCard and Visa have aggressive new start-up initiatives in the Blockchain space, and are eager to diversify into emerging sectors at relatively little cost โjust in caseโ they turn out to live up to the hype. Perhaps inadvertently, theyโre helping crucially institutionalize Blockchain.
The chances are that if you own MasterCard shares in your portfolio, youโve had them for a while. The same goes for IBM; itโs popular among long-term investors. Yesterday, they got some good short-term news with the stock up 8% after-hours!
Big Blue beat on both revenue and profit, with its new CEO backing the current stock market recovery as โlonger and more protractedโ than he had expected back in March.
The megacorp is doing well, but hasnโt updated its year-end guidance from pessimistic targets set three months ago. If it does, or if it doesnโt and subsequently beats those targets, the stock will get another kick up. It looks like a bad year is turning out quite well for some!
I am not a financial advisor and my comments should never be taken as financial advice.ย Investments come with risk, so always do your research and analysis beforehand.