Both Visa (V) and Mastercard (MA) were downgraded to Neutral from Buy at Bank of America. Jason Kupferberg, the analyst behind this decision, joins Market Domination to discuss the reasoning for the call.

Kupferberg cites two factors influencing his position. First, he notes "a little bit less confidence" in the long-term revenue growth trajectory for both credit companies, anticipating top-line growth to fall below 10%. Second, he points to increased regulatory scrutiny and litigation activity surrounding Visa and Mastercard, which could impact their operations and profitability.

"The general message we've heard from all payments companies in the last couple of months, including Visa and Mastercard, has been that they're seeing stability in underlying overall payment volumes. So, we're not suggesting that there's gonna be some big miss here on earnings but nor do we see particular upside," Kupferberg told Yahoo Finance.

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This post was written by Angel Smith