From Yahoo Finance: 2025-04-12 11:02:00

The stock market turmoil, linked to Trump’s tariffs, caused many stocks to drop, including American Express (AXP), which fell by 16% in less than a week. Despite some gains, it’s still down 16% for the year. Experts debate if now is a good time to invest in AXP amid tariffs and economic uncertainties.

Investing in American Express could be beneficial due to its strength and ability to navigate downturns. However, the company is exposed to economic risks. With high annual credit card fees, AXP creates stability, but faces challenges if the economy falters. Some experts believe AXP is better positioned than competitors.

American Express has made strategic investments for growth, like in Blackbird Labs. Despite potential disruption, these moves show AXP’s proactive stance. However, risks include high card fees deterring customers in an economic downturn. Failure to convert on customer goals could impact revenue growth projections.

Any investment, like in American Express stock, carries risks. While AXP has strengths, like a strong balance sheet, it faces challenges like customer retention and economic uncertainties. Diversification is key to mitigate risks when investing in individual companies. American Express may lose market share to Visa, Mastercard, and Discover due to more attractive offerings. While consumer staples are expected to hold up, American Express could be an attractive stock pick subject to further decline. In a downturn, Amex stock could be disposed of along with other financial names.

Read more: 2 Experts Argue Pros and Cons of ‘Buying the Dip’ Amid Trump Tariff Drama