How to buy American Express shares (2024) – invest in AMEX
Would you like to invest in American Express stocks? In this article, you can learn how to buy American Express shares directly. You can also find an overview of the strengths and weaknesses of American Express.
How to buy American Express stocks?
Before you buy American Express stocks, it is important to compare the company with its competitors. If a competitor like Visa delivers better results, it may be smarter to buy their shares instead.
If you are certain that you want to buy American Express shares, you need an account with a reliable stockbroker:
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Why can it be interesting to buy American Express stocks?
- Strong brand: American Express is known as a “premium brand” and has a good reputation among consumers.
- High incomes: American Express customers generally have high incomes, which means that the profit per customer is high.
- Technology: American Express works hard to improve its fraud detection systems and develops AI applications for this purpose.
- Diverse products: American Express offers various services in combination with its credit cards. This makes it easier for the company to attract customers.
- Unique: AMEX has many partnerships with other companies. For example, you can apply for a special Air France KLM AMEX credit card.
- Interest: Unlike Visa and Mastercard, American Express issues credit cards itself, allowing it to earn interest.
- Repayment: American Express does not allow customers to repay in instalments. Customers must pay their full balance at the end of the month, which lowers the risk for AMEX.
- Revenue: American Express charges higher fees to merchants, which is positive for the company’s profit margin.
- Dependent on spending: American Express’s income is closely linked to customer spending. When spending decreases, the company’s income decreases.
- Interest rate risk: Changes in interest rates can affect the profitability of American Express.
- Competition: The financial industry is competitive, which forces American Express to work hard on its product offerings.
- Specific region: Most of American Express’s income comes from America, which makes the company dependent on the economic climate in this area.
Who are the biggest competitors of American Express?
- Visa
- Mastercard
- Discover Financial Services
- JPMorgan Chase & Co
- Citigroup
What is the stock price of American Express?
The price of a stock can fluctuate constantly. In the graph below, you can see how the stock price of American Express has developed over time. Use the buttons to open an investment in the company.
Company information of American Express
Below are the key company details of American Express.
Analysis of American Express stocks
Before deciding whether to buy or sell American Express, it is important to analyse the stock first. In the overview below, you can see how American Express has developed over the past period.
Stock prices of the last 5 days
In the table below, you can see the stock prices of American Express for the last 5 days:
What will the stock price of American Express do in 2024?
Are you curious about what analysts think American Express will do in 2024 and the years after? We have combined the forecasts of analysts using data from Alpha Vantage. Remember that this number is only a prediction about the price development of American Express and that this prediction does not necessarily have to come true.
How to invest in American Express stocks?
- Step 1: First, open an account with a stockbroker that you trust. You can also open an account with multiple brokers and test the possibilities.
- Step 2: Then, deposit money into your investment account via bank transfer, PayPal, or credit card.
- Step 3: Select the American Express stock and enter the amount you want to invest.
- Step 4: Then, send the order to the stock exchange by clicking buy.
- Step 5: Don’t forget to evaluate your investment regularly. If the stock no longer fits within your portfolio, you can sell it immediately and transfer the money back to your bank account.
About American Express
The headquarters of the financial services provider American Express, also known as Amex, is located in New York. This company is mainly known in our country for the issuance of credit cards and traveller’s checks.
Since 1958, the company’s logo has featured a gladiator or centurion. This logo is depicted on all travel vouchers, payment cards, and credit cards issued by the company. The company is one of the most well-known brands in the world, with 75% of its revenue generated in America.
The history of American Express
American Express started issuing traveller’s checks at the end of the nineteenth century. From 1950, American Express also issued credit cards in response to the issuance of credit cards by Diners Club. The company mainly focuses on wealthier consumers, and there is a strict admission process: you must have a decent income to qualify for the cheapest card variant.
Merchants are charged a relatively high fee. Accepting American Express cards is therefore less attractive than accepting Visa or Mastercard credit cards. By asking for a higher fee from merchants, American Express can regularly treat its customers to extra points. American Express customers earn points for every dollar they spend, which they can use to book fun trips.
You can also apply for special credit cards at American Express. For example, the company issues credit cards for airlines, hotel chains, and even amusement parks, which offer unique benefits.
Differences with Mastercard and Visa
Different business model
American Express started its activities earlier than competitors Visa and Mastercard. Visa and Mastercard do not issue credit cards themselves and are only licensors. Visa and Mastercard are therefore credit card networks, which means they use banks for the processing of their credit cards.
Stricter admission requirements
American Express does issue credit cards. The company is both a credit card network and a credit card issuer. American Express is also stricter with its customers than Visa or Mastercard. The income required by American Express to qualify for a credit card is higher than the income required by Visa and Mastercard.
No deferred payment
In addition, American Express credit cards are charge cards. This means that customers must always pay their credit card bills in full. It is not possible to pay in instalments, while Mastercard and Visa do offer this possibility.
Financial risk
One advantage of issuing credit cards itself is that American Express can earn money from the interest income from outstanding loans. At the same time, there is also an important risk to consider when investing in American Express stocks: in bad economic times, the chances increase that people cannot repay their credits.
American Express is a strong brand whose stock price has always performed very well in the long run. The business model behind AMEX is strong, and the many collaborations with other companies attract many customers. Moreover, since AMEX focuses on wealthy customers, the company loses less money due to defaults.
However, it is essential to keep a close eye on the competition. American Express is constantly competing with other credit card giants for market share.
