American Express stock dropped 11% in March due to concerns about Trump's tariffs impact.
From Yahoo Finance: 2025-04-03 08:02:00
American Express stock fell 11% in March, sparking concerns about the impact of Trump’s tariffs on spending. Despite this, the company has seen revenue and EPS growth, driven by millennial and Gen Z customers. The company is well-positioned to manage through volatility and maintain its momentum.
The annual fees generated by American Express provide a recurring revenue stream and loyalty from cardmembers. These fees increased by 18% year over year, accounting for almost 13% of revenue. However, tariffs could pose a short-term challenge for the company, affecting luxury spending.
At its current price, American Express stock trades just under a P/E ratio of 20. While not cheap, the stock reset to a more attractive entry point. Investors can feel confident in buying at this price due to the company’s strong performance and growth potential. Considerations before buying stock in American Express include potential market returns and other top stocks to watch.
American Express is celebrating its 150th anniversary this year and has adapted to cater to a younger, affluent demographic without alienating its traditional customer base. Despite short-term challenges, the company’s growth in revenue, EPS, and market share positions it well for continued success.