Out Fox The $treet

After the close, Visa (V) reported the following numbers according to Briefing.com :

Summary IBM is reportedly working on a digital cash technology to work with global currencies. Such a digital payments network could have major repercussions for the high margins of Visa and MasterCard. The technology concept has an interesting twist considering the partnership IBM is forging with Apple and the ability to connect this network with Apple Pay. Last week,  Reuters broke news  that IBM (NYSE: IBM ) was working on adopting bitcoin technology to potentially develop a form of digital cash for a payments system. The details are sketchy at this point, but the news should give pause to a few high-priced stocks in the payments processing sector. Read the full article on Seeking Alpha.  Disclosure: Long IBM. Please review the disclaimer page for more details. 

Summary MasterCard has lost momentum after several years of substantial gains. High operating margins are attracting competitive threats. Virtual currencies offer lower costs. Back in January, Stone Fox Capital warned that the MasterCard Incorporated ( MA ) stock split could signal a top in the stock. The company followed up the split with an earnings miss that further hit the stock. Suddenly, a stock that had ridden an uptrend for several years faces the reality that a bullish trend doesn't mean a never ending stock gain. MasterCard is the second largest payment processing network behind Visa ( V ) . The company connects consumers, financial institutions, merchants, and businesses in more than 210 countries around the globe. Even after the recent stock weakness, MasterCard is still worth around $90 billion. Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details.