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American Express - AI Stock Analysis

Analysis generated February 23, 2025

American Express (NYSE: AXP) is a globally recognized financial services company, known for its credit card, charge card, and traveler's cheque businesses. The company has built a significant reputation and loyal customer base over the years, driven by its focus on premium customer service and extensive rewards programs. American Express operates in three main business segments: Global Consumer Services Group (GCSG), Global Commercial Services (GCS), and Global Merchant and Network Services (GMNS). The company’s brand strength and business model aim to attract high-spending customers and merchants, driving revenue through various fees and interest income.

Fundamental Analysis

American Express reported revenue of $15.9 billion for the last quarter, which represents an increase of 3.97% compared to the previous quarter. While this is a positive sign of growth quarter-over-quarter, it is important to note that revenue has decreased by 10.48% compared to the same quarter last year. This year-over-year decrease could be a cause for concern and may indicate some challenges faced by the company.

Net income for the last quarter stood at $2.17 billion, indicating a decrease of 13.44% from the quarter before. Despite this drop, the net income saw a 12.26% increase compared to the same quarter last year. This year-over-year growth in net income is positive and shows resilience in the company's profitability.

EBITDA for the last quarter was at 0, representing a complete decrease of 100% both from the prior quarter and the same quarter last year. This is a significant concern as EBITDA is a key indicator of a company's operating performance.

The Price-to-Earnings (P/E) ratio currently stands at 21.1. This P/E ratio is within a normal range, suggesting the stock is neither overvalued nor undervalued based on earnings. However, recent insider selling activity may be a bearish sign, indicating potential concerns among company executives about future performance.

Technical Analysis

Today's stock price for American Express is $295.40, reflecting a decrease of 9.35% compared to a month ago. This short-term decline may raise concerns. However, on a year-long perspective, the stock price has increased by 39.20%, suggesting a strong long-term performance. Despite this long-term uptrend, the current trend is bearish.

The current Simple Moving Average (SMA10) is $305.70, which is lower than the previous SMA10 of $306.91. This indicates a potential downward trend in the short-term price movement. Furthermore, the Relative Strength Index (RSI) is 81.9, suggesting that the stock is potentially overbought and may face bearish conditions.

Alternative Data Analysis

According to recent data, American Express currently has 478 open job positions, which is down by 22% over the past couple of months. This decrease in job postings indicates that the company may be trying to improve its margins or cut costs, which is not a great sign for a growing company. Employee sentiment appears to be neutral, neither strongly positive nor negative about the company’s future business outlook.

Regarding customer acquisition, American Express has approximately 104 million visitors to their webpage with no significant change in recent months. On the other hand, the mobile apps have seen a daily download rate of about 20,000, which is an increase of 245% in the last couple of months. This is a bullish trend as it suggests a potential increase in new customers and user engagement.

In terms of customer engagement on social media, American Express has 640,000 followers on Instagram and 840,000 followers on Twitter. While the number of Instagram followers has remained steady, the number of Twitter followers has not changed, indicating a potential stagnation or loss in interest. According to AltIndex's AI score, which uses fundamental, technical, and alternative data to predict stock price movements, American Express stands at a score of 48, signaling a 'hold' recommendation.

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.