Why Credit Card Stocks Got Hit Hard Today
Shares of Mastercard (NYSE: MA), American Express (NYSE: AXP), Discover Financial (NYSE: DFS), and Capital One (NYSE: COF) all fell by approximately 5% on Tuesday, following Visa's (NYSE: V) warning of a revenue shortfall due to the coronavirus outbreak.
Visa said in a filing on Monday that the outbreak of COVID-19, the disease caused by the novel coronavirus, has resulted in a "sharp slowdown" in its cross-border business, due in part to a significant reduction in travel to and from Asia.
"Cross-border growth rates have deteriorated week by week since the coronavirus outbreak in China, and trends through February 28, 2020 do not yet fully reflect the impact of the coronavirus spreading outside of Asia," Visa said. "As such, we anticipate that this deteriorating trend has not bottomed out yet."
Source Fool.com
