Jim Cramer -- Visa, MasterCard Doing Well Despite Court Ruling
Bloomberg News
While shares of MasterCard (MA) - Get Report and Visa (V) - Get Report are both higher by more than 1% on Friday, the stocks were "rocked" after a federal court threw out an anti-trust settlement Thursday, TheStreet's Jim Cramer said on CNBC's "Stop Trading" segment.
The 2012 settlement between merchants and these two companies was overturned. Although this doesn't present any meaningful risk to earnings, it does create headline risk, said Cramer, the co-manager of the Action Alerts PLUS portfolio.
It's unfortunate, because it was one of those "finally out of our way" outcomes that Visa, MasterCard and investors had been seeking, Cramer explained. Now all of a sudden it's back in the news making headlines.
Once the news was out, it caused a quick wave of emotional selling, with both stocks falling. However, "both companies are doing quite well right now," Cramer concluded.
At the time of publication, Cramer's Action Alerts PLUS had a long position in V.