Why MasterCard and Green Dot Got Crushed

MasterCard (NYSE: MA  ) and Green Dot (NYSE: GDOT  ) reported earnings on Friday, and investors weren't overly impressed. Shares of Green Dot were down nearly 20%.

In this segment of The Motley Fool's financials-focused show, Where the Money Is, banking analysts Matt Koppenheffer and David Hanson discuss the results, Green Dot's outlook, and the hurdle MasterCard investors need to clear in order to get good returns.

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  • Report this Comment On February 01, 2014, at 1:03 AM, adcmelb wrote:

    Its way to early to call the demise of VISA, MasterCard or American Express for a number of reasons 1/ Most businesses in the world except at least Visa and MasterCard - how many cafes or hardware stores let you pay via bitcoin or paypal.

    2/ Theres a whole generation out there that haven't even heard of these other payment systems let alone want to use them and yet they have MasterCard or Visa.

    3/ Some of the worlds airlines are now issuing dual frequent flyer cards that can be used to load currency from countries around the world. The card is used like a prepaid credit card and user still gets point for using their own money - again owned by Visa or MasterCard.

    4/ I find it hard to believe Visa or MasterCard are going to let a new comer take their business that easy.

    5/ Business / Government use Visa / MasterCard to pay for expenses - one itemised paid on a monthly basis easy and traceable transactions.

    Plenty of more reasons But one important point is that Warren Buffett hasn't sold his American Express or MasterCard shares.

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