Here’s Why Visa (V) Declined in Q2
Aristotle Atlantic Partners, LLC, an investment advisor, released its “Focus Growth Strategy” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The U.S. equity market regained its strength in the second quarter, following initial volatility, with the S&P 500 Index rising 10.94%. The Bloomberg U.S. Aggregate Bond Index also surged 1.21% during the quarter. Aristotle Atlantic’s Focus Growth strategy returned 17.70% gross of fees (17.67% net of fees) in the quarter, underperforming the Russell 1000 Growth Index’s 17.84% total return. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its second quarter 2025 investor letter, Aristotle Atlantic Focus Growth Strategy highlighted stocks such as Visa Inc. (NYSE:V). Headquartered in San Francisco, California, Visa Inc. (NYSE:V) is a payment technology company. The one-month return of Visa Inc. (NYSE:V) was 0.20%, and its shares gained 32.54% of their value over the last 52 weeks. On July 21, 2025, Visa Inc. (NYSE:V) closed at $350.94 per share, with a market capitalization of $685.561 billion.
Aristotle Atlantic Focus Growth Strategy stated the following regarding Visa Inc. (NYSE:V) in its second quarter 2025 investor letter:
"Visa Inc. (NYSE:V) detracted from relative performance in the second quarter due to growing concerns that stablecoins could pose a long-term threat to the company’s payments business. While consumer adoption of stablecoins remains limited at present, pending U.S. legislation viewed as favorable to the cryptocurrency ecosystem, along with interest from large merchants exploring the issuance of proprietary stablecoins, has highlighted potential disruption risks to parts of Visa’s core network."
A close-up of a credit card being swiped on a payment terminal, reflecting the company's payments technology.
Visa Inc. (NYSE:V) is in 6th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 165 hedge fund portfolios held Visa Inc. (NYSE:V) at the end of the first quarter, which was 181 in the previous quarter. In Q1 2025, Visa Inc. (NYSE:V) reported $9.5 billion in net revenue, up 10% year-over-year. While we acknowledge the potential of Visa Inc. (NYSE:V) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on thebest short-term AI stock.
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