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Visa dips after underwhelming fourth-quarter guidance

The payments processor did deliver top and bottom line beats in its third-quarter results, however.

Matt Phillips

Visa delivered solid fiscal Q3 results, with earnings and revenues topping Wall Street’s expectations. However, guidance for the fourth quarter was on the light side.

The payments processor reported adjusted earnings per share of $2.98, better than Wall Street’s $2.85 estimate. Net revenue of $10.2 billion (up 14%) beat the $9.85 billion forecast from analysts.

Management said Q4 net revenue growth would be in the high single digit to low double digits. Penciling in 10% net revenue growth would put Q4 revenues around $10.57 billion, a whisker shy of the $10.6 billion expected from analysts polled by Bloomberg.

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SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

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