American Express Co Stock Opened Down by 4.48% on Feb 27: Key Drivers Unveiled

American Express Co (AXP) opened down by 4.48%. The Banking & Investment Services industry is up by 0.45%. The company underperformed the industry. Top 3 gainers of the industry: PRA Group Inc (PRAA) up 16.57%; Marathon Bancorp Ord Shs (MBBC) up 5.99%; Pineapple Financial Inc (PAPL) up 5.36%.

American Express (AXP) experienced a notable decline in its share price today, which can be attributed to several factors including broader market concerns, recent analyst adjustments, and underlying economic data. A significant element contributing to the downward pressure was a general risk-off sentiment in the market, partly fueled by an escalation in U.S. tariff policy. This broader market reaction raised concerns about overall economic growth and consumer spending, which directly impacts companies like American Express that are heavily tied to discretionary spending, particularly in travel and entertainment.

Additionally, recent analyst price target adjustments likely played a role. While American Express received mostly "Hold" ratings from analysts, some firms had recently lowered their price targets on the stock in early February, reflecting revised estimates following the company's fourth-quarter 2025 earnings report. For example, Evercore ISI Group and UBS both reduced their price targets on AXP. Despite generally positive long-term forecasts from the company itself for 2026, which included projected revenue growth and increased dividends, the slight miss on Q4 2025 quarterly earnings per share compared to analyst expectations had already led to a stock dip earlier.

Furthermore, recent macroeconomic data indicated a slowdown in U.S. economic growth in the fourth quarter of 2025, with a pull-back in consumer spending. Although consumer spending still saw an increase, it was notably below the previous quarter's gain. This broader economic softening, coupled with an outlook for more moderate credit card balance growth and stable delinquency rates in 2026, could lead investors to anticipate a less robust operating environment for credit card companies. While some reports highlighted continued strong spending by affluent customers and positive trends in new account origination, the overall sentiment regarding the health of the consumer economy and potential regulatory scrutiny over credit card interest rates created a complex landscape.

Technically, American Express Co (AXP) shows a MACD (12,26,9) value of [-6.99], indicating a sell signal. The RSI at 42.10 suggests neutral condition and the Williams %R at -63.97 suggests oversold condition. Please monitor closely.

In terms of media coverage, American Express Co (AXP) shows a coverage score of 48.42, indicating a moderate level of media attention, with bullish sentiment.

American Express Co (AXP) is in the Banking & Investment Services industry. Its latest annual revenue is 56.12B, ranking 6 in the industry. The net profit is 10.70B, ranking 10 in the industry. Company Profile

Over the past month, multiple analysts have rated the company as HOLD, with an average price target of 379.41, a high of 462.00, and a low of 272.91.

Company Specific Risks:

• Escalation of global tariffs is identified as a significant headwind for 2026, leading to purchasing power erosion for middle-market consumers and a noticeable dip in cross-border B2B spending, which contributed to an 8% stock decline on February 23rd.
• Increased short interest in the company during February, with a reported 20% rise to approximately 8.6 million shares, suggests growing bearish sentiment and potential for increased downside pressure or volatility.
• A persistent policy overhang exists in the credit card industry due to ongoing discussions of a potential 10% cap on credit card interest rates, which could pressure valuation multiples for card issuers like American Express.