Why American Express Stock Dropped 11% in March
American Express (NYSE: AXP) stock fell 11% in March according to data provided by S&P Global Market Intelligence. Investors are worried about the impact of President Donald Trump's new tariff campaign on spending, which could negatively impact the credit card network's business.
American Express has reinvented itself as a card of choice for the young and affluent. It's managed to capture this market without alienating its traditional business-minded cardmember, and it's making strides in its banking and small business categories as well. That's leading to momentum throughout the business, and although the company is celebrating its 150th anniversary this year, it's as potent as ever.
Revenue increased 7% last year, and earnings per share (EPS) were up 25%. Millennial and Gen Z customers are driving growth, accounting for the largest increases in spending by age group. It ended the year with record card spending, record card fees, and record card acquisitions of 13 million. Management said that fee-based consumer premium cards are the fastest-growing part of the industry in the U.S., and Amex has 25% of the category. Millennial and Gen Z adoption is growing faster than industry rates, and American Express is adding these members at a higher rate than industry levels.
Source Fool.com
