Tuesday, August 03, 2010

MasterCard American Decline

MasterCard(MA) issued improved results but was not encouraging for the future. Offshore growth was the primary driver. Look closely at the US numbers. Volumes declined by half of one percent. The offshore volumes cannot possibly cover the half percent US decline over the long run. If the US consumer does not pick it up Mastercard has a problem. Speaking of marketing. Volumes decline in the US but the marketing costs were flat for the quarter. Is there a strategic abandonment or are they just prepared to have someone else eat their lunch?

Disclosure: No position in any stocks mentioned in this post.