American Express (AXP-N)

Just reported overall positive results, but shares were clubbed because they didn't raise their full-year forecast, and volume growth decelerated. However, US spending rose 9% YOY with travel/entertainment up 13% including restaurant spending. Gen-Z and Millennial spending up 18%.

Very attractive business with excellent capital allocation skills. Share count keeps going down. Not worried about slowing economy with this business. Share price a good place to buy. Berkshire Hathaway a major shareholder. Recent earnings exceeded expectations. 

Shocked that it trades below 15x forward PE. Constant-currency business is up 12%. Good mix of revenues and are managing operational expenses. US consumer growth is 13%, international is 23%. Much cheaper than Mastercard.

The valuation of Visa and Mastercard has been elevated, but the growth has supported it. AmEx has the cheaper valuation; they benefit from international travel. He prefers AXP. He owns a little Visa. The future of payments processing? It's Apple Pay, which kids use through their phones. The sector has a lot of moving parts and competition, so it's hard to say where it's going.

Spending, travelling and higher interest rates are catalysts.

Likes it, but prefers Mastercard while others like MA and Visa. Expectations heading into AXP's recent quarter were too high--and remain too high. Let this come down a little more before it bottoms.

He owns Visa and Mastercard, but not AmEx over its debt-to-equity ratio. AmEx does have strong momentum now, though. It is approaching tougher comps, but this is a buying opportunity because it can be perceived as weakness. All told, he is considering buying this.

Reported a mixed quarter, but she has faith and is holding on and even bought more. Why? the US consumer grew 13% and international card spend grew 23%. Overall card member spend is at an all-time high. She bought on today's dip and expects AmEx to grow earnings substantially this year.

Reported a mixed quarter, but another record revenue quarter. Likes it. Are concerns over higher provisions and some delinquencies. 60% of new cardholders are millennials which is really a good growth opportunity.

Overall volumes rose 16% YOY as cross-border travel continues to increase.

Shares popped last Friday on strong travel figures in the jobs report. Some see the end of the post-Covid travel boom. He disagrees.

They had a great quarter and is now trading at an historic low of 12x. A high proportion of their sales comes from travel/leisure which is strong.

AmEx reported Q1 on April 20 that revenue rose 22% year-over-year to achieve a quarterly record. Notably, Card Member spending climbed 16% on an FX-adjusted basis while shared Travel and Entertainment spending jumped 39%. U.S. consumer services revenue jumped 25% YOY while commercial services revenue added 15%. International card services revenue increase 22% and global merchant and network services revenue rose 23%. Read Travel winners & losers for our full analysis.

AmEx reported last week that YOY goods and services revenues were up 10%, travel and entertainment up 30%, GenXers spending 14% more and Millennials and GenZ 28%.

It reports Thursday. Had a fine previous quarter. Cross-border travel is a big deal, so look for comments.