Will Mastercard (MA) Stock Be Helped By Its Expectation Of Big Growth From 'Big Data' Insights?

NEW YORK (TheStreet) -- Mastercard (MA) sees business booming from selling data to retailers, banks and governments on spending patterns found in the payments it processes, Ann Cairns, who heads MasterCard's business outside North America, told Reuters.

MasterCard uses that information to generate real-time data on consumer trends, available more quickly that regular government statistics, Reuters noted.

"It is an incredibly fast growing area for us," said Cairns, stressing that the company respects cardholder privacy, using anonymous data rather than personal information.

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MasterCard does not give figures for its information services products but "other revenues", which include the sale of data, grew 22 percent in the first quarter of 2014 to $341 million, outpacing the growth of total revenue dominated by payments processing, which rose 14 percent to $2.177 billion.

Mastercard stock is doen -0.26% to $77.16 in early morning trade.

TheStreet Ratings team rates MASTERCARD INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate MASTERCARD INC (MA) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, increase in net income and expanding profit margins. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."

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