|By Nathan Young|
Once the exclusive card of Costco, now is trying to maintain their space in this particular market space. With the addition of chip technology and other protective measures, American Express has needed to update their cards to remain compliant and competitive. If you have been to a store and they don’t accept American Express and wondered why, a large reason is they charge the most per swipe and the stores usually do not want to pay the higher fees to accommodate this particular card.
With that in mind, their main competition is Visa and Master Card and these are two companies that are in the wallets of many. They way money is being processed, it is crucial for American Express to stay on top of these changes and provide the least expensive way to transfer money at stores. Now that they are no longer the exclusive credit card of Costco, this certainly will continue to put pressure on the company to retain their card holders and spread their footprint far and wide.
If you take a look at the chart using the monthly time frame, you can see that price has continued to fall and has finally caught a bid. This could indicate the declining use of their card as a whole or effects from the way their cards are processed and the costs. At any rate, the chart certainly would be an indication the company is slipping, but you are unable to tell that from just looking at the chart. Take a look under the hood and see how the fundamentals match up with competitors and determine if they have the momentum and sustainability to progress into the future.
Taking a look at the risks of the company are certainly important, so here are a couple to keep in mind while you continue to research more about the company. First, they have to maintain competitive pricing and usability because if no one can use the card no one will request it. Secondly, technology is changing and that means American Express will have to remain up to date with the latest and greatest, otherwise people will go else where for the money processing needs. Lastly, they have to market their brand image in a way that everyone feels welcome to use their products and that it is not for a certain group of people.
Overall, this company has been around for quite some time, but faces intense competition and may not be the best option out there. Be sure to look at the competition and decide if this company is providing the best value or if there are better options out there. If you still have questions, reach out to an investing professional and they can help to point you in the right direction.
|This article from Macroaxis published on 20 of April contributed to the next trading period closing price depreciation.The overall trading delta to the next next day price was 0.48% . The overall trading delta when the story was published to current price is 25.95% .|