American Express' Moat Is More Resistant Than What You Think

Bruno Montoya Amador159 FollowersFollow5ShareSavePlay(14min)CommentsSummaryAmerican Express is rated Buy, leveraging a powerful moat built on high-spending, loyal cardholders and a closed-loop data advantage.AXP’s shift toward higher net interest income and increased loan balances has not led to materially higher credit risk, with delinquency rates stable around 1.4%.The company’s expansion to third-party issuers and global partnerships has scaled growth, but may modestly erode exclusivity and profitability.Despite competitive threats from RTP systems and declining discount rates, AXP’s service, data, and customer base underpin resilience and long-term growth. Michael Vi/iStock Editorial via Getty Images Intro American Express Company (AXP) has had a rough couple of months, declining 9% in 6 months. With many short-term forces acting against AXP, such as Trump’s intention to cap creditThis article was written byBruno Montoya Amador159 FollowersFollowI am a full-time equity analyst and the co-founder of Mina Vista Capital Management, a hedge fund that my business partner, William Hazen, and I started. I look for long-term investment opportunities with a focus on fundamentals. I’ve done extensive research on industries such as energy, technology, and homebuilding, and I’m continuing to expand my knowledge. I find discussions with other analysts, especially when we hold opposing views, very constructive to both of our theses. If you have a different view on any of the companies I cover, send me a message on X and I’ll be happy to discuss.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.