Here’s What History Says Q4 Will Bring for American Express (AXP) Stock
In the world of finance, American Express (NYSE: AXP) is a unique operation. It not only issues cards to customers, taking on credit risk in the process, but it also runs the underlying payments platform that connects merchants and consumers. This is a closed-loop model that allows the business to capture more of the economics anytime its cards are used at checkout.
As of June 30, there were 155 million American Express cards in use in more than 200 countries around the globe, giving it massive reach. It’s best known for the Platinum Card, which targets affluent consumers with an $895 annual fee that comes with valuable perks and rewards.
Even Warren Buffett has long been a fan of the company. Berkshire Hathaway owns 151.6 million shares, giving it a 22.5% stake in American Express. That’s a major vote of confidence.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.