Here's What Concerns Mastercard Incorporated's (MA) Future Growth

Janus Henderson Investors, an investment management company, released its “Janus Henderson Forty Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned 19.34% in the second quarter, compared to the Russell 1000 Growth Index’s 17.84% return.  Stock selection in the information technology and industrials sectors contributed to the relative performance of the fund in the quarter, while stock selection and an overweight in healthcare detracted. US equities delivered strong results in the second quarter despite early tariff worries in April. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Janus Henderson Forty Fund highlighted stocks such as Mastercard Incorporated (NYSE:MA). Mastercard Incorporated (NYSE:MA) is a payment technology company that offers transaction processing and other payment-related products and services. The one-month return of Mastercard Incorporated (NYSE:MA) was 4.47%, and its shares gained 23.16% of their value over the last 52 weeks.  On August 29, 2025, Mastercard Incorporated (NYSE:MA) stock closed at $595.29 per share, with a market capitalization of $538.149 billion.

Janus Henderson Forty Fund stated the following regarding Mastercard Incorporated (NYSE:MA) in its second quarter 2025 investor letter:

"Mastercard Incorporated (NYSE:MA) was also among the top relative detractors. The payment processor posted flat performance despite resilient fundamentals and strong operating results. Stablecoin and growth in alternative digital payments have created some market concerns on the durability of future growth. However, we don’t believe these competitive threats will materially impact the business near term."

Mastercard Incorporated (NYSE:MA) is in 11th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 158 hedge fund portfolios held Mastercard Incorporated (NYSE:MA) at the end of the second quarter, which was 155 in the previous quarter. Mastercard Incorporated’s (NYSE:MA) second-quarter net revenue rose by 16%, driven by continued growth in the payment network and value-added services and solutions. While we acknowledge the potential of Mastercard Incorporated (NYSE:MA) 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.

In another article, we covered Mastercard Incorporated (NYSE:MA) and shared the list of best stocks for a 20-year long-term stock portfolio. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.