Mastercard (MA), Create Labs Develop AI Tool for Small Business
Mastercard Incorporated MA recently announced that it is developing an AI tool, namely, Mastercard Small Business AI, to assist small business owners. Mastercard recognizes the contribution of small business owners to the global economy and aims to help them thrive in a challenging and evolving environment. MA is partnering with Create Labs, a social venture, for assistance in the development of this tool.
This move bodes well for Mastercard as it is a stepping stone to achieving its goal of financial inclusion. Mastercard earlier pledged to bring 1 billion of population and 50 million MSMEs into the digital economy by 2025. Mastercard has continued to leverage its extensive network, insights, technology and collaborations to boost the growth prospects of SMEs. The company aims to launch increased digital solutions for bringing more SMEs under the scope of an evolving digital economy. With this new tool, MA will leverage generative AI to solve questions surrounding topics like business plan crafting, insights on acquiring customers and exploring grants among others.
Per the UPS Store Survey, 88% of small businesses acknowledge the value of mentorship, and hence, Mastercard Small Business AI will be of immense use to them. The new tool will answer questions in a conversational tone and incorporate emerging technologies, making it more efficient. Mastercard’s content repository from Digital Doors and business data of companies like Blavity Media Group, Newsweek, Group Black and TelevisaUnivision will make the chatbot relatively bias free. These companies will license their content like interviews, articles and podcasts.
Mastercard plans to launch this tool in late 2024 in the United States and is also ambitious about international expansion. MA is currently deliberating providing this service for free or charging for additional content. These initiatives are likely to poise Mastercard’s prospects well for the future as it will enhance its offerings.
Shares of Mastercard have gained 6.5% in the past six months compared with the industry’s 5.8% growth. MA currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks in the Business Services space are Envestnet, Inc. ENV, Gartner, Inc. IT and FirstCash Holdings, Inc. FCFS. While Envestnet and Gartner sport a Zacks Rank #1 (Strong Buy) each, FirstCash Holdings carries a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of Envestnet outpaced estimates in three of the last four quarters and matched the mark once, the average beat being 3.2%. The Zacks Consensus Estimate for ENV’s 2024 earnings suggests an improvement of 24.8% from the 2023 estimate. The consensus estimate for revenues suggests growth of 9.8% from the 2023 estimate. The consensus mark for ENV’s 2024 earnings has moved 3.7% north in the past seven days.
The bottom line of Gartner outpaced estimates in each of the last four quarters, the average beat being 34.4%. The Zacks Consensus Estimate for IT’s 2024 earnings suggests an improvement of 9.3% from the 2023 estimate. The consensus estimate for revenues suggests growth of 7.7% from the 2023 estimate. The consensus mark for IT’s 2024 earnings has moved 0.9% north in the past 60 days.
FirstCash Holdings’ earnings outpaced estimates in each of the trailing four quarters, the average surprise being 7.9%. The Zacks Consensus Estimate for FCFS’s 2024 earnings suggests an improvement of 21.6% from the 2023 estimate. The consensus estimate for revenues suggests growth of 7.8% from the 2023 estimate.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Mastercard Incorporated (MA) : Free Stock Analysis Report
FirstCash Holdings, Inc. (FCFS) : Free Stock Analysis Report
Gartner, Inc. (IT) : Free Stock Analysis Report
Envestnet, Inc (ENV) : Free Stock Analysis Report
