Mastercard - AI Stock Analysis

Analysis generated January 10, 2026

Mastercard is one of the leading global payment technology companies that connect consumers, financial institutions, governments, and businesses worldwide. The company operates one of the world's most sophisticated processing networks, which facilitates transactions across more than 210 countries and territories. Mastercard's product offerings include an array of services such as financial processing, fraud protection, and credit card services. The company's business model mainly focuses on transaction fees, assessment fees, and service fees.

Fundamental Analysis

Mastercard reported a revenue of $8.6 billion for the last quarter. This represents a 5.77% increase compared to the previous quarter, indicating a positive sign of short-term growth. Year-over-year, revenue has seen a significant increase of 16.73%, suggesting robust long-term growth and a strong performance relative to the broader market.

Net income for the last quarter was $3.93 billion, which shows a 6.11% increase from the previous quarter, and a year-over-year growth rate of 20.35%. This level of profitability underscores Mastercard's efficiency and effectiveness in managing its operations.

Furthermore, Mastercard's EBITDA for the last quarter stood at $5.35 billion. This marks a 3.94% rise from the preceding quarter and a 25.91% year-over-year increase. EBITDA growth indicates that the company is not only growing its top line but also optimizing its operational efficiency.

The current Price to Earnings (P/E) ratio for Mastercard is 37.04. A P/E ratio this high may be considered an indication of overvaluation, posing some risk to investors. It is essential to consider that although the company's growth metrics are strong, the market may have overly optimistic expectations.

Technical Analysis

The current stock price for Mastercard stands at $575.54, which has seen a 6.81% increase over the past month, indicating positive momentum in the short term. Over a more extended period, the stock has appreciated by 14.52% over the past year, solidifying a bullish long-term trend.

The Simple Moving Average (SMA) for the last 10 days (SMA10) is currently at $572.03, which is marginally up from the previous SMA10 of $571.56. This slight upward movement suggests a potential upward trend in price action.

However, the Relative Strength Index (RSI) is at 95, which indicates that the stock is potentially overbought and might face a bearish correction in the near term.

Alternative Data Analysis

Looking at job postings and employee sentiment, Mastercard currently has 1,039 open positions. This number has decreased by 13% over the last couple of months, possibly indicating efforts to improve margins or manage costs more efficiently. The business outlook among employees is very positive, with 81% having a favorable view of the company's future—a positive indicator of internal sentiment.

In terms of customer acquisition, Mastercard's website has garnered an impressive 13 million visitors recently, an 18% increase over the last couple of months. This uptick suggests a growing interest from potential customers, aligning with a bullish outlook.

Customer engagement metrics show mixed results. Mastercard Instagram has seen a 6% rise in followers to 290,000, indicating growing interest. However, their Twitter followers have dropped by 1% to 480,000, which could point to declining engagement on that platform.

Lastly, the AltIndex’s AI score, which aggregates fundamental, technical, and alternative data, gives Mastercard a score of 68. According to the AI algorithms, this score signals a "Buy".

Conclusion and Recommendation

Mastercard’s robust revenue and net income growth, combined with a positive long-term stock price trend, indicate a solid financial footing and operational excellence. Though the P/E ratio suggests overvaluation concerns and the high RSI points to a potentially overbought condition, the overall sentiment from alternative data, including employee outlook and customer acquisition, is promising. Considering these factors, investors might find Mastercard to be a strong candidate for long-term growth. However, caution is advised in the short term due to potential price corrections.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.