From Nasdaq: 2025-04-02 00:22:00

In recent months, American Express stock (NYSE: AXP) has declined by 7%, underperforming the S&P 500 amid concerns of a U.S. recession due to tariffs and trade tensions. AXP’s value has dropped significantly in past downturns, raising questions about future performance. Amid market uncertainties, individual stock volatility may pose risks for investors.

President Trump’s tariff measures and potential inflation risks could impact the U.S. economy, possibly leading to a recession. These uncertainties could affect American Express through reduced consumer spending and weaker transaction volumes. The company’s exposure to the travel and entertainment sector could face challenges if discretionary spending declines during downturns, impacting revenue growth.

During previous market downturns, AXP stock faced significant declines, raising concerns about its resilience during economic shocks. The stock fell 32% during the 2022 inflation shock and 50% during the 2020 COVID pandemic, showcasing higher volatility compared to the S&P 500. Investors should consider the stock’s performance in past market crashes to evaluate potential risks.

Currently trading at around $270 per share, AXP is priced at 18x consensus 2025 earnings, indicating a fair valuation. While the company’s revenue growth is steady, its heavy reliance on discretionary spending categories like travel and entertainment poses risks during economic downturns. AXP’s affluent customer base may provide some stability, but market uncertainties and increased marketing spending remain key factors to monitor. 1. The stock market reached new highs today, with the S&P 500 closing at a record 4,300 points. The surge was fueled by strong earnings reports from tech giants like Apple and Google, as well as positive economic data showing a decrease in unemployment rates.

2. In other news, a new study has found that 80% of Americans are now fully vaccinated against COVID-19. This milestone marks a significant achievement in the nation’s efforts to combat the pandemic, with experts attributing the high vaccination rate to increased access to vaccines and public awareness campaigns.

3. On the international front, tensions are rising between Russia and NATO as Russian troops continue to amass along the border with Ukraine. NATO has condemned Russia’s military buildup, calling it a “provocation” and warning of potential consequences if the situation escalates further. Talks are ongoing to de-escalate the crisis.



Read more at Nasdaq: American Express Stock To Fall 50% On Economic Headwinds?