Is American Express Built for the Next Decade of Spending?
Yahoo Finance ·
American Express ( AXP 0.35% ) is undoubtedly the leader in the premium segment of the credit card market. It has registered durable growth, with net revenue rising at a compound annual rate of 8.8% in the past 10 years. The top line was lifted by billed business, the amount of payment volume the company handles, growing at a 5.4% yearly clip. The market cares what American Express' performance will look like in the future. Is this financial stock built for the next decade of spending? Investors will struggle to find reasons to be bearish on this business. The current economic climate is doing everything but instilling confidence in consumers and investors. Higher energy prices are pushing inflation to three-year highs. Housing turnover is low as mortgage rates remain elevated. And there are concerns about how the labor market will evolve as artificial intelligence progresses. These headwinds are no match for American Express. During the first quarter, the company's billed business climbed 10%, the fastest pace in three years .
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