Mastercard’s (MA) Shopping Muse Debuts With Michael Kors

Mastercard Incorporated MA recently announced a collaboration with Michael Kors, making the company the first retailer to integrate Shopping Muse in its website in the United States. Shopping Muse, from Dynamic Yield, a Mastercard company, is a retail assistant launched in late 2023, aiming to leverage generative artificial intelligence (AI) capabilities to give tailored product recommendations to customers.

This move bodes well for Mastercard as integration with Shopping Muse is expected to drive improved revenues and boost customer satisfaction. Shopping Muse delivers what traditional search queries cannot by using AI to match recommendations with queries and individual preferences as well as behavior. The use of Shopping Muse generated around 15-20% higher conversion rates for customers compared to traditional search queries. Improved transaction volumes bode well for MA’s top line.

Shopping Muse’s integration with Michael Kors should aid the company in the upcoming wedding season and summer adventures. Michael Kors is a perfect partner for MA’s new product as its ready-to-wear fashion complements the use case of Shopping Muse. It will help bring Michael Kors’ shopping experience into the digital world, benefiting customers.

The launch of Shopping Muse is expected to strengthen MA’s competitive position and help it attract new clients and partnerships. This new product is of dire need for retailers, given the fast-evolving trends they must adopt new methods to gain business.

Per the 2023 Customer Loyalty and Personalization Benchmark Report, more than one out of four retailers are using generative AI solutions, while 13% are planning to use it in the upcoming year, highlighting the timeliness of this move.

Shares of Mastercard have gained 6.7% in the past six months compared with the industry’s growth of 4.5%. 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 Duolingo, Inc. DUOL, Aptiv PLC APTV and FTI Consulting, Inc. FCN. Duolingo currently sports a Zacks Rank #1 (Strong Buy), and Aptiv and FTI Consulting carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The bottom line of Duolingo outpaced estimates in each of the trailing four quarters, the average surprise being 115.2%. The Zacks Consensus Estimate for DUOL’s 2024 earnings is pegged at $1.74 per share, which indicates a nearly five-fold increase from the year-ago reported figure. The same for revenues indicates year-over-year growth of 37.8%. The consensus mark for Duolingo’s 2024 earnings has moved 13% north in the past 30 days.

Story continues

Aptiv’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 12.2%. The Zacks Consensus Estimate for APTV’s 2024 earnings indicates an improvement of 23.7% from the year-ago reported figure. The same for revenues implies growth of 5.2%. The consensus mark for Aptiv’s 2024 earnings has moved 0.7% north in the past 30 days.

The bottom line of FTI Consulting outpaced estimates in each of the last four quarters, the average surprise being 27.8%. The Zacks Consensus Estimate for FCN’s 2024 earnings implies an improvement of 6.6% from the year-ago reported figure. The same for revenues indicates growth of 6.5% from a year ago. The consensus mark for FTI Consulting’s 2024 earnings has moved 0.9% north in the past 60 days.

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

FTI Consulting, Inc. (FCN) : Free Stock Analysis Report

Aptiv PLC (APTV) : Free Stock Analysis Report

Duolingo, Inc. (DUOL) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research