J.P. Morgan cut estimates for Mastercard (MA) – Get Report, PayPal (PYPL) – Get Report and Visa (V) – Get Report after the financial-sector majors cut their own estimates in response to the coronavirus outbreak.
Coronavirus concern has hurt cross-border travel, especially to Asia, and has even stifled e-commerce, according to JPMorgan’s channel checks.
Visa and Mastercard are expected to see the biggest first-quarter-earnings drag from the coronavirus due to narrowing margins, while PayPal has “much lower margins and higher variable costs.”
