Mastercard (MA) CEO: Spending Growth Occurring Across All Income Bands

Mastercard (MA) CEO Michael Miebach said June 5 that consistent consumer spending growth is occurring across all income levels, aligning with a stronger-than-expected U.S. jobs report for May. "Spending continues, spending growth continues," he told Yahoo Finance, dismissing concerns about a K-shaped economy and noting consumers are adjusting to economic volatility. Mastercard's first-quarter net revenue surged 16% year-over-year to $8.4 billion, with adjusted earnings of $4.60 per share. Revenue from high-margin value-added services and solutions jumped 22%. Gross dollar volume climbed 7% and purchase volume rose 9% on a local currency basis. Rivals Visa (V), American Express (AXP), and Affirm (AFRM) also reported strong Q1 results, defying fears of a consumer slowdown. JPMorgan analyst Tien-tsin Huang described Mastercard's performance as healthy. The stock has dropped 14% over the past year, compared to a 9.5% gain for American Express and an 8.5% decline for Visa. However, AlphaSpace data shows Mastercard's sales growth has exceeded the 14% level seen seven quarters ago, and operating profit margins remain above 50%, suggesting the fundamentals may not support bearish sentiment.