Shares of American Express (AXP 0.64%) fell as much as 4.2% Tuesday afternoon, then partially recovered to trade down 1.6% as of 3 p.m. ET after the company's CEO revealed spending trends softened at the start of the fourth quarter.
NYSE: AXP
Key Data Points
"A lot going on in October" for American Express
Speaking at the Goldman Sachs 2023 Financial Services Conference earlier today, American Express CEO Stephen Squeri noted that after achieving 8% billings growth in the second quarter and 7% in Q3, "in October, everybody got a little bit skittish, and I think other people have said the same thing -- that growth wasn't as strong in October [...] like it was in the third quarter."
"There's a lot going on in October," Squeri elaborated, noting consumers appeared to pull back on travel and entertainment spending at the start of the fourth quarter.
What's next for American Express stock?
Squeri did say, however, that shopping trends improved somewhat in November, adding that American Express also enjoyed "very strong" trends in the U.S. at the start of the key holiday shopping season, from Thanksgiving to Cyber Monday.
Squeri also said American Express remains focused on reaching its "aspirational" longer-term target for at least 10% annual revenue growth starting in 2024, as well as growth in earnings per share in the mid-teens percent range.
Assuming the timing of past earnings releases holds true, American Express should be slated to announce official fourth-quarter results around the end of January 2024. In the meantime, though the market was understandably spooked by Squeri's comments indicating a slow start to the fourth quarter, it seems American Express' longer-term growth story remains intact.
