Why Shares of Mastercard Are Falling Today
Shares of Mastercard (NYSE: MA) traded 5.2% lower as of 1:25 p.m. EDT today for no obvious reasons other than broader macroeconomic factors and market sentiment.
Shares of the payments company dipped as the broader market got creamed today due to concerns over rising cases of the COVID delta variant across the country. At one point, the Dow Jones Industrial Average had tumbled roughly 900 points as the market panicked about the potential for slower economic growth and even potential lockdowns.
While you might see the Mastercard logo on many of your debit and credit cards, the company does not make credit card loans, but is instead a global payments company that facilitates transactions. Therefore, it makes money based on total spend volume, so slower economic growth and potential lockdowns are not good for the company.
Source Fool.com
