Visa Prices at $44

Therefore the company is valued at approximately $33 billion. MA is currently valued at $27 billion. It's difficult to say how the market will react to this, but basically MA will follow V's lead tomorrow. If it pops big, MA will probably go with it. If V performs poorly, it could drag MA down as well. I personally continue to prefer MA in all instances. Quite often the "star" company in a sector continues to be the leader regardless of new issues that IPO. However, I'd still remain cautious due to the hype. MA had a nice rally today in anticipation of the IPO, and officially closed only a few points below its all time high. Overall, if you held on to MA throughout this entire mess, you woulda come out pretty well ahead of the pack.

Remember that there are 406 million shares being offered, and generally larger number of shares = larger overhead supply.

One thing to note is that this IPO is actually going to be very important to the market since many shares are actually being sold by member banks, whom we know are in need of liquidity. Couldn't come at a better time!

UPDATE
MA is trading fractionally higher after news of the pricing, which means that investors are not concerned about the valuation comparison. We can probably expect a gap up in MA shares tomorrow. How much of it is due to Cramer's buy recommendation on MA, I'm not sure.