Visa (V) Fell Amid a Broader Selloff in The Card Network

Sands Capital, an investment management company, released its “Sands Capital Select Growth Strategy” Q2 2025 investor letter. A copy of the letter can be downloaded here.  U.S. large-cap growth equities recovered from a sharp sell-off in early April by delivering strong returns in the second quarter. The quarterly performance was driven by muted inflation, strong corporate earnings, and improving sentiment around artificial intelligence (AI) and global trade. The portfolio returned 27.7% in the quarter, outperforming the benchmark Russell 1000 Growth Index's 17.8% gain. You can check the fund’s top 5 holdings to know more about its best picks for 2025.

In its second-quarter 2025 investor letter, Sands Capital Select Growth Strategy highlighted stocks such as Visa Inc. (NYSE:V). Headquartered in San Francisco, California, Visa Inc. (NYSE:V) is a payment technology company. Visa Inc. (NYSE:V) shares returned -0.99% over the past month and appreciated by 16.29% over the last 12 months. On September 15, 2025, Visa Inc. (NYSE:V) stock closed at $339.05 per share, with a market capitalization of $658.076 billion.

Sands Capital Select Growth Strategy stated the following regarding Visa Inc. (NYSE:V) in its second quarter 2025 investor letter:

Visa Inc. (NYSE:V) operates the world’s largest retail electronic payment network. Shares declined in June amid a broader selloff in card network stocks following stablecoin-related headlines. Unlike the market, we do not view stablecoin proliferation as a threat to card volumes; in fact, we believe it could expand the addressable market for card networks. While stablecoins may have utility in cross-border business-to business transactions, we think they are unlikely to disrupt consumer-to-merchant payments, where cards offer a compelling value proposition—rewards, liquidity, ubiquity, buyer protections, and trust. Moreover, card networks could enhance stablecoin adoption by providing the rules, protections, and services needed for broader, mainstream use.

Visa Inc. (NYSE:V) is in 6th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 167 hedge fund portfolios held Visa Inc. (NYSE:V) at the end of the second quarter, which was 165 in the previous quarter. In the fiscal third quarter of 2025, Visa Inc. (NYSE:V) reported $10.2 billion in net revenue, up 14% year-over-year. While we acknowledge the potential of Visa Inc. (NYSE:V) 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 Visa Inc. (NYSE:V) and shared unrivaled stocks of the next 3 years. 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.