From Nasdaq: 2024-09-18 11:01:00

JPMorgan in Talks with Apple for Credit Card Partnership

JPMorgan is in discussions with Apple Inc. to potentially become the issuer of the Apple Card, replacing Goldman Sachs. This comes after Goldman faced losses in its consumer division and notified Apple of its intention to offload the partnership.

Negotiations Progressing

Discussions between JPMorgan and Apple have been advancing, with no certainty of an agreement yet. JPM seeks better terms to pay less for outstanding balances in the Apple Card program. The negotiations are complicated by higher-than-average delinquencies and defaults on the cards due to offering cards to customers with weak credit scores.

JPMorgan Aiming for Growth

JPMorgan is seeking to strengthen its market share by potentially taking over the Apple Card program. The company also aims to expand its presence in various sectors, including corporate banking in Switzerland and wealth management services in Dubai, as part of its strategy for growth.

Zacks Rank and Price Performance

Shares of JPMorgan have gained 23% year-to-date compared to the industry’s 17.1% growth. The company currently holds a Zacks Rank #3 (Hold) as it continues its negotiations with Apple regarding the credit card partnership.

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Zacks Investment Research has identified a semiconductor stock with significant growth potential in the Artificial Intelligence, Machine Learning, and Internet of Things sectors. With an expanding customer base and strong earnings growth, this stock is poised to capitalize on the growing semiconductor industry projected to reach $803 billion by 2028.

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