American Express Co
AXP: XNYS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| $532.00 | Ffwxk | Wdbmbsk |
American Express Well Positioned as Travel Recovery and Fee Increases Create Tailwinds for Growth
Business Strategy and Outlook
American Express has enjoyed a strong start to 2022 as the company’s payment volume benefited from a recovery in travel and entertainment spending (roughly 30% of prepandemic billings) as pandemic fears faded. American Express generates more than 80% of its revenue through noninterest income, with its largest source of revenue being the discount rate charged to merchants when they accept payment from one of its cardholders. This means that a recovery in travel and entertainment spending has a direct impact on the company’s revenue.