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American Express - AI Stock Analysis
Analysis generated November 23, 2024
Founded in 1850, American Express is a multinational financial services corporation headquartered in New York City. It is best known for its credit card, charge card, and traveler's cheque businesses. As one of the 30 components of the Dow Jones Industrial Average, American Express is a notable force in the financial industry, boasting a diverse range of financial products and services. The company has a reputation for serving a premium market, focusing on high-income consumers and businesses.
Fundamental Analysis
Revenue for the last quarter: $15.3 billion. This marks an increase of 1.43% compared to the previous quarter, which is a positive indicator of growth. However, it’s important to note that this figure shows a decline of 11.05% compared to the same quarter last year, which could be a concern.
Net Income for the last quarter: $2.51 billion. This reveals a decrease of 16.85% compared to the previous quarter, which is a source of concern. On a year-over-year basis, this is an increase of 2.28%, suggesting some positive long-term growth.
EBITDA for the last quarter: $3.2 billion. This shows a significant decrease of 42.65% compared to the previous quarter, indicating potential issues. However, compared to the same quarter last year, it shows a slight increase of 3.35%, suggesting positive year-over-year growth.
Current P/E Ratio: 21.58. This valuation metric appears to be within a normal range, suggesting the stock is neither particularly undervalued nor overvalued.
Regarding insider activity, there have been a couple of insiders selling their stock in recent months, which could be seen as a bearish signal.
Technical Analysis
Today's stock price: $301.30. This represents an increase of 11.09% compared to a month ago, indicating a positive short-term trend. Over the past year, the stock price has soared by 85.44%, suggesting a strong long-term trend.
Current SMA10: 290.33, which is marginally higher than the previous SMA10 of 288.97. This indicates a potential upward trend in price movement.
RSI: 61.3. The Relative Strength Index suggests a neutral condition, neither overbought nor oversold, providing no strong buy or sell signals.
Alternative Data Analysis
Job Postings and Employee Sentiment: American Express has 614 open positions, down by 24% in the last couple of months. This reduction indicates a potential cost-cutting measure, which may not be a great sign for a growing company. Employee sentiment about the business outlook is neutral.
Customer Acquisition: American Express has an estimated 101 million visitors to their webpage, with no significant change in recent months. Additionally, there are approximately 5,700 daily downloads of their mobile apps, which has also seen no meaningful increase or decrease over the past months.
Customer Engagement: American Express has 620,000 followers on Instagram, which is up by 4% in recent months, indicating increased interest. However, their Twitter following stands at 840,000, which has seen a decline of 1%, suggesting a slight loss of interest.
An AI-based score by AltIndex rates American Express at 41, which is a hold signal.
Conclusion and Recommendation
American Express exhibits a mixed set of indicators across fundamental, technical, and alternative data analyses. While the revenue growth quarter-over-quarter is a positive sign, the year-over-year decline necessitates caution. Similarly, the drop in net income and EBITDA quarter-over-quarter is concerning despite the positive year-over-year numbers. The P/E ratio being within a normal range suggests that the stock isn't profoundly overvalued or undervalued.
On the technical front, the significant increase in stock price over one month and one year, coupled with a bullish trend and supportive moving averages, is encouraging. The RSI indicates neutrality, providing no strong conviction for buying or selling. The alternative data presents a somewhat ambiguous picture, with reductions in job postings potentially reflecting cost-cutting measures, while social media engagement offers mixed signals.
Given the diverse set of indicators, the recommendation is to hold the stock. Maintaining a cautious approach while monitoring future performance and broader market conditions is advisable.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
