What's Next for Visa Stock After DOJ Lawsuit?
Visa stock continues to fall after the Justice Department accused the payments giant of monopolizing the debit card market. Here's what investors need to know.


Visa (V) stock is lower Wednesday, extending Tuesday's 5.4% decline, after the Department of Justice (DOJ) said it is suing the payments processing giant for "exclusionary and anticompetitive conduct."
The DOJ's complaint accuses Visa of having a monopoly over the debit card market and claims it uses its dominance to prevent competition. By preventing competition, the Justice Department says that the company is able to charge more for processing transactions than it would in a competitive market.
"We allege that Visa has unlawfully amassed the power to extract fees that far exceed what it could charge in a competitive market," said Attorney General Merrick B. Garland in a statement. "Merchants and banks pass along those costs to consumers, either by raising prices or reducing quality or service. As a result, Visa's unlawful conduct affects not just the price of one thing – but the price of nearly everything."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
More than 60% of debit transactions in the U.S. run on Visa's debit network, the DOJ said, which it charges more than $7 billion in fees to process. It added that the credit card company prevents competition by imposing exclusionary agreements on merchants and banks and penalizes them if they route transactions through a different debit network or payment system.
"Anticompetitive conduct by corporations like Visa leaves the American people and our entire economy worse off," said Principal Deputy Associate Attorney General Benjamin C. Mizer in a statement.
The DOJ is asking that the court to stop Visa from several anticompetitive measures detailed in the lawsuit, including bundling credit services and imposing pricing or incentive structures.
Visa responded by calling the Justice Department's lawsuit "meritless," according to CNBC.
"Anyone who has bought something online, or checked out at a store, knows there is an ever-expanding universe of companies offering new ways to pay for goods and services," said Visa General Counsel Julie Rottenberg in a statement. "Today's lawsuit ignores the reality that Visa is just one of many competitors in a debit space that is growing, with entrants who are thriving."
Is Visa stock a buy, sell or hold?
Visa is up roughly 5% for the year to date on a total return basis (price change plus dividend), yet Wall Street remains bullish on the Dow Jones stock.
According to S&P Global Market Intelligence, the average analyst target price for V stock is $305.84, representing implied upside of more than 13% to where it's trading as of this writing. Additionally, the consensus recommendation is Buy.
Financial services firm Baird is one of the more bullish outfits on the blue chip stock with an Outperform rating (equivalent to a Buy) and a $320 price target.
"We like Visa as a steady compounder, but understand investor fear of regulatory scrutiny, the U.S. total addressable market (TAM) becoming penetrated, and pressure on incentives," says Baird analyst David Koning.
Nevertheless, the analyst thinks Visa is attractively valued at current levels and likes the company's "high-quality earnings stream, secular growth, and value-added services growth."
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Striking Gold (or Gas): A Financial Pro Unpacks the Nuances of Energy Investing
Investing in the energy industry, particularly oil and gas, involves understanding the facts about how projects generate returns through cash flow and long-term asset building, while also being aware of the risks.
-
Escaping the New Golden Handcuffs: A Financial Expert Has a Plan for Today's Executives
Feeling stuck in your job? It could be your complicated compensation package, but it also could be where you live, your family or even how you view yourself.
-
Striking Gold (or Gas): A Financial Pro Unpacks the Nuances of Energy Investing
Investing in the energy industry, particularly oil and gas, involves understanding the facts about how projects generate returns through cash flow and long-term asset building, while also being aware of the risks.
-
Escaping the New Golden Handcuffs: A Financial Expert Has a Plan for Today's Executives
Feeling stuck in your job? It could be your complicated compensation package, but it also could be where you live, your family or even how you view yourself.
-
Stock Market Winners and Losers of the 'Big, Beautiful' Bill
Defense, manufacturing and tech should prosper, while health care and green energy stocks face hurdles.
-
I'm a Financial Planner: Here's How to Invest Like the Wealthy, Even if You Don't Have Millions
Private market investments, once exclusive to the ultra-wealthy and institutions, have become more accessible to individual investors, thanks to regulatory changes and new investment structures.
-
Four Ways a Massive Emergency Fund Can Hurt You More Than It Helps
Saving too much could mean you're missing opportunities to put your money to work. Redirect some of that money toward paying off debt, building retirement funds, fulfilling a dream or investing in higher-growth options.
-
With Buffett Retiring, Should You Invest in a Berkshire Copycat?
Warren Buffett will step down at the end of this year. Should you explore one of a handful of Berkshire Hathaway clones or copycat funds?
-
I'm a Financial Planner: How to Dodge a Retirement Danger You May Not Have Heard About
Timing is everything, and sequence of returns risk can mean the difference between a retirement nest egg that's overflowing … or empty.
-
Caring for Aging Parents: An Expert Guide to Easing the Financial and Emotional Strain
Early conversations, financial planning and understanding the progression of care needs can help to mitigate stress and protect family relationships.