Mastercard (NYSE: MA) closed slightly higher on Thursday at $351.41 +(0.11%), as the company nears the end of the trading week following a couple of major announcements.
On September 7, 2021, the payments giant confirmed that it had reached an agreement to acquire Aiia, a prominent European open banking technology provider that gives banks a direct link via an API. In addition, on September 9 Mastercard also agreed to buy CipherTrace, a recognized blockchain intelligence company for an undisclosed price ‘to enhance crypto capabilities’.
In terms of price, MA is now trading in the center of its 52-week range in the market. The S&P 500 Index, on the other hand, is at record levels, showing that MA is trailing behind the market.
Notably, the business is trading below its 20, 50, and 100-day simple moving averages, typically utilized by stock investors as uptrend indications. As a result of recent performance and a price below the 20-day SMA, it appears that the firm’s short-term momentum is bearish.
Mastercard appears to have a good setup pattern. There is less volatility, and prices have been stabilizing in the most recent period, despite a noticeable increase in volume over the previous several days.
Recently, MA has traded between $338.93 and $366.10, which is quite a large range. Above the present price, there is relatively little resistance. Below the present price, at $340.71, traders may use a support zone to put a stop order.
There are two key support areas to be aware of; a combination of numerous trend lines in multiple time frames has produced a support zone extending from $340.22 to $340.71. At the same time, support may be found at $333.17 from a horizontal line in the daily time period.
In terms of resistance, we identified one significant zone, a range at $393.27 to $395.66 resistance zone produced by a combination of numerous trend lines in multiple time periods.
Wall Street analysts predict
Fifteen Wall Street trading analysts made 12-month price forecasts based on Mastercards performance during the past three months. Its average price goal is $441.27, with a high projection of $482 and a low $385. Thus, the forecasted average price is a 25.57% increase over the previous price of $351.41.
Based on the judgment of the last three months, fourteen TipRanks experts have recommended MA as a “Buy,” while only one analyst has reaffirmed their “Hold” recommendation. Interestingly none of the experts suggest “Sell.” Overall the analysts consider Mastercard a strong buy, with an average price target increase of 25.57% from its current price of $351.57.
MA acquisition of Aiia
The purchase of Aiia allows Mastercard’s customers to create and launch innovative digital products that suit the demands of everyday life, work, and leisure through a single API connection to banks.
A key component of Open Banking is that it empowers customers to decide where and when their data is used to deliver the services they want and need. Consumer-permitted data is used by fintech and banks to give simpler and more inclusive access to credit, personal financial management, digital wallets, and payments services. As a trusted middleman and a secure data network, Mastercard plays a key role in this ecosystem.
Craig Vosburg, Chief Product Officer, Mastercard, stated:
“The value of open banking comes through empowering consumers and businesses to use their own data to obtain financial services solutions simply, securely, and quickly. The addition of Aiia anchors our European open banking efforts and allows us to continue to meet our customers where they are.”
MA buying blockchain analytics startup CipherTrace
An unknown sum will be paid for CipherTrace, according to the payments giant. CipherTrace, based in Menlo Park, California, creates technologies to help companies and law enforcement track illegal digital currency transactions.
Ajay Bhalla, president of cyber and intelligence at Mastercard, said in a statement:
“With the rapid growth of the digital asset ecosystem comes the need to ensure it is trusted and safe. Our aim is to build upon the complementary capabilities of Mastercard and CipherTrace to do just this.”
The acquisition is the latest indication that large corporations are becoming more interested in the crypto industry. Select cryptocurrencies will be allowed on Mastercard’s network this year, according to the company. Despite recent regulatory worries, the business continues to cooperate with Binance crypto exchange.
Not to forget, Mastercard stated that it would offer a crypto rewards credit card this year in cooperation with cryptocurrency exchange Gemini, suggesting that the corporation continues to expand into new areas and a desire to thrive as a result of the latest technology.
Ultimately, crypto proponents will see the latest acquisition as an essential step towards widespread adoption of this asset class.