Content from InvestorPlace
Discover the top blue-chip stocks to buy in payment processing and systems software. All companies exhibit strong financial performance, market dominance, and consistent growth.
- PayPal (PYPL): Owns an extensive two-sided network that boosts engagement and transaction volumes.
- Microsoft (MSFT): Integrates cutting-edge AI to enhance cloud services.
- Visa (V): Maintains strong client satisfaction and stable business drivers.
Investing in blue-chip stocks is a must for a stable and growth-oriented portfolio. These companies offer solid fundamentals and reliable returns. Here, the focus is on three such companies in sectors with stable growth.
The digital payment industry is booming because of the global shift to cashless transactions and new technologies that provide security and ease of use. As this trend accelerates, companies in this sector are positioned for sustained revenue growth. Artificial intelligence in cloud computing is becoming very resourceful and highly in demand. As companies pioneer AI-powered cloud services, they capitalize on this increasing need for scalable data solutions; it’s an area that calls for much-needed investment.
Lastly, companies with a robust global market presence are not just about revenue diversification; they are about stability. Their ability to weather economic downturns and consistently perform well ensures reliable returns for investors.
By focusing on such high-potential sectors, investors can ensure stability with growth in a portfolio for long-term financial success.
The original “Magnificent Seven” stocks generated 16,800% over the last 20 years.
But now a new set of AI stocks is set to take over.
Alex Green dubs them “The Next Magnificent Seven.”
And he’s arguing that just $1,000 in each could turn into more than $1 million in less than six years.
Watch his breakdown of these seven stocks here.
PayPal (PYPL)
PayPal (NASDAQ:PYPL) specializes in digital payments and financial technology. Its extensive two-sided network is a significant strength that creates substantial network effects. In the second quarter, PayPal had 429 million total active accounts and 222 million monthly active accounts, a steady sequential increase from the previous quarter. Certainly, the large user base creates a self-reinforcing cycle, and increased consumer adoption attracts more merchants.
Additionally, PayPal operates in a massive $6 trillion global e-commerce market. The ongoing digitization of payments provides substantial growth opportunities to build omnichannel capabilities. To capture a larger market share, PayPal offers value-added services. By addressing online and offline payment needs, PayPal expands its addressable market, enhancing its value proposition to consumers and merchants.
In Q2, PayPal’s total payment volume (TPV) grew by 11% year over year. TPV reached $417 billion. This growth was consistent in the U.S. and international markets. The company’s revenue increased by 8%, highlighting strong performance despite macroeconomic challenges. The transaction margin dollars grew by 8% from a year ago, more than a 3% improvement from Q1. The company achieves this through increased transaction volumes and operational efficiency.
Overall, PayPal’s extensive network of consumers and merchants strengthens its position among blue-chip stocks.
[Urgent buy alert] This stock tied to Elon Musk could 11x SOON
Elon Musk’s new AI company (X.AI) is set to conclude its funding round with a valuation of roughly $18 billion. But shockingly – That’s NOT the biggest project on Elon’s plate right now.
This is:
Inside this secret facility in Lathrop, California…
Elon’s team is quietly developing a vital new technology that’s about to SHOCK a $23 Trillion market.
This has NOTHING to do with AI, or space, or self-driving cars… And yet Elon has already said “[Project X” is growing] faster than our car business.”
Click here to learn more about “Elon’s Endgame”.
Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) focuses on cloud computing and software solutions. Azure’s share gains accelerated due to advancements in AI. Investments in data center expansions span four continents, supporting long-term growth and global reach. Microsoft introduced AI accelerators from Advanced Micro Devices (NASDAQ:AMD) and Nvidia (NASDAQ:NVDA). Azure Maia and the new Cobalt 100 enhance high-performance computing, showcasing Microsoft’s focus on cutting-edge technology in cloud services.
Moreover, Azure AI’s customer base grew to over 60,000, which marks a nearly 60% increase from a year ago. The average spend per customer is rising. This growth signifies rising demand and trust in Microsoft’s AI capabilities. Azure Arc’s customer base increased by 90% from last year. It now serves 36,000 customers.
Further, Azure Arc aids in seamless cloud migrations that prove Microsoft’s ability to cater to diverse industry needs. The Azure VMware Solution is the fastest, most cost-effective way to migrate VMware workloads. This emphasizes Microsoft’s efficient, customer-centric approach. Indeed, Microsoft’s hyperscale cloud is the top choice for SAP (NYSE:SAP) and Oracle (NYSE:ORCL) workloads. This reinforces Microsoft’s capability in handling mission-critical enterprise applications.
Overall, its lead in AI integration and significant market share in cloud services make it a high mark on the top blue-chip stocks list.
A.I. Pioneer Warns, “Don’t Touch Nvidia with a 10-Foot Pole”
If you read the headlines on Fox Business or the Wall Street Journal… You might think investing a few dollars in Nvidia right now is a wise thing to do.
WRONG!
Former bank V.P. Ross Givens has uncovered what he calls a massive “coverup”. You see, a new superchip (shown below) is threatening to turn the A.I. world upside-down…
Early investors in this new technology have the potential to get tens of thousands of dollars richer if things go as he expects.
He’s been right before… Like when he gave investors a chance to turn five investments into a $337,000 treasure chest.
It would be a sin to miss out this time.
PS: This revolutionary superchip changes everything. Take a few minutes to watch his urgent video presentation today. Who knows? It could put you on track to becoming the NEXT A.I. millionaire!
Visa (V)
Visa (NYSE:V) operates a global payment network for transactions. Visa’s key business drivers show stability and growth, which is crucial for long-term expansion. In constant dollars, overall payment volume grew 7% from a year ago, indicating a steady increase in Visa’s payment network usage. U.S. payments volume grew 5%, which showcases Visa’s solid domestic market presence. Visa maintains growth in a mature market.
Further, International payments volume grew by 10%, highlighting Visa’s successful international expansion. Visa effectively leverages global opportunities as cross-border volumes show significant growth. Cross-border volume, excluding intra-Europe, rose 14%, underscoring the increasing adoption of international transactions.
Moreover, these transactions have higher fees and contribute more to revenue. Processed transactions grew 10% in the last year. More transactions handled by Visa’s network led to higher fees and data processing revenue. Certainly, Visa’s high and improving net promoter score (NPS) reflects strong client satisfaction. Strong client satisfaction is critical for long-term success. Visa achieved a global NPS of 76, up three points from the previous year, which indicates high client satisfaction and loyalty. Hence, high satisfaction can lead to increased usage of Visa’s services.
Overall, consistent revenue growth, high client satisfaction, and stable business drivers reinforce Visa’s blue-chip stock status.
Look Who Fired the World’s Richest Man
When it comes to making money, the “Titan of Tech” doesn’t mess around.
Known to his friends as Pete, the eccentric billionaire ousted a young Elon Musk from the company they co-founded and took his job… while Musk was away on his honeymoon.
Under Pete’s leadership as CEO, the company grew exponentially, turning his small $1,700 investment in the company into $55 million – a 3,250,000% gain in just 3 years.
Now, he’s about to eat Elon’s lunch again… only this time in the AI race.
In 2023, Musk developed a chatbot called Grok.
Not long after, he called for a 6-month pause in AI development, citing ethical concerns.
His critics say his motivation is more like: “You guys slow down so I can catch up.”
Pete, on the other hand, founded a company in 2003 that is now on the cutting edge of the $200 TRILLION AI revolution.
The company is tiny… but already has contracts with 30 federal agencies and services some of the biggest companies in the U.S.
And demand for the technology is unprecedented … “unlike anything we have seen in the past,” says a spokesman.
In fact, U.S. commercial revenue is up 70% year-over-year.
It’s no wonder Pete calls this company … “The next Google.”