Visa (V) Slid Due to Potential Regulatory and Legislative Headwinds

Wedgewood Partners, an investment management company, released its first-quarter 2026 investor letter. A copy of the letter can be downloaded here. The Wedgewood Composite returned -6.3% (net) in the first quarter compared to the S&P 500’s -4.3%, the Russell 1000 Growth Index’s -9.8%, and the Russell 1000 Value Index’s 2.1% returns. The letter mentioned the ongoing war, highlighting the swift response of financial and commodities markets to military strikes and geopolitical commentary. Historically, oil shocks have consistently displayed a significant influence on global financial markets.  In addition, please check the Fund’s top five holdings to know its best picks in 2026.

In its first-quarter 2026 investor letter, Wedgewood Partners highlighted Visa Inc. (NYSE:V). Visa Inc. (NYSE:V) is a multinational financial services company known for its payment technology network that offers credit, debit, and prepaid card products and other services. On April 28, 2026, Visa Inc. (NYSE:V) closed at $309.30 per share. One-month return of Visa Inc. (NYSE:V) was 3.61%, and its shares lost 10.48% over the past 52 weeks. Visa Inc. (NYSE:V) has a market capitalization of $589.53 billion.

Wedgewood Partners stated the following regarding Visa Inc. (NYSE:V) in its Q1 2026 investor letter:

“Visa Inc. (NYSE:V) reported strong revenue and earnings-per-share growth of +15%, driven by solid consumer spending and the continued expansion of “value-added” services. Despite this fundamental strength, the market pressured shares, ostensibly due to potential regulatory and legislative headwinds. The White House recently backed a legislative amendment that could introduce incremental competition into the Mastercard/Visa duopoly in the United States. While a legal framework for competition is undoubtedly an incremental risk, we view the technological and practical execution of actual competition as far less of a threat. Furthermore, attempts to attach the amendment to recent legislation have failed, making it far from certain that this new competitive framework will see the light of day.”

Visa Inc. (NYSE:V) ranks 9th on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 184 hedge fund portfolios held Visa Inc. (NYSE:V) at the end of the fourth quarter, up from 179 in the previous quarter. 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 the best short-term AI stock.