MasterCard Profits Drop, Stock Slips
May 1, 2009 by Stephen Kersey
Filed under Business
Friday was a good day and a bad day for MasterCard. The bad news is that profit in the first quarter of 2009 was down almost 20% when compared to profit in 2008. More bad news is that MasterCard’s stock dropped $10.55, which was almost 6% of its value.
MasterCard (Image: Flickr)
The good news is that the drop in profit wasn’t as drastic as many industry experts feared. Profit in the first quarter of 2008 was $447 million. This year, that number fell to $367 million. While that is a big drop, it beat most predictions.
Like many companies, MasterCard is looking for ways to cut corners and save money. According to reports, MasterCard cut their advertising budget in the first quarter by more than 30%. The company also cut the amount of money spent on travel.
Stock market experts say that MasterCard’s stock fell because many investors thought the company would be more optimistic about its outlook. Instead, MasterCard representatives admitted that the global economic woes are making business growth difficult.
MasterCard stock is currently trading at around $172.50
