Pfizer Inc. and BioNTech SE’s upbeat vaccine news is giving a lift to many payments stocks Monday amid hope that a vaccine can revive the global travel landscape and drive a broader recovery in consumer spending.
Shares of Visa Inc.
are up 9% in Monday trading, while shares of Mastercard Inc.
are up more than 11% after Pfizer
said that their vaccine candidate had shown 90% effectiveness in preventing COVID-19, a much higher threshold than originally expected.
“With a vaccine showing good progress, we think the travel-sensitive and [small- and medium-sized business]-sensitive stocks could rally,” Baird analyst David Koning wrote in a note to clients. Visa and Mastercard generate about 20% to 25% of their revenue from cross-border travel, he wrote, and this