Mastercard's Stock Price Plummets on Earnings Miss
Mastercard (NYSE: MA) missed earnings estimates in the third quarter, primarily due to lower travel-related spending during the summer months. The stock price plummeted about 6% on the third-quarter earnings news in early trading Wednesday.
For the quarter, the credit card processor's revenue was down 14% to $3.8 billion, while net income was down 27% to $1.5 billion, or $1.51 per share. The drop in revenue came primarily from cross-border volume, which fell 36%. Cross-border volume refers to when the merchant and issuer are in different countries. The decline is due in large part to travel being down because of the pandemic.
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Source Fool.com
