Amazon Shifts Business Card from AmEx to U.S. Bank; AmEx Secures $900M NFL Deal
AXP sits 37% above its 52-week low of $220.43.
Summary
American Express has secured a seven-year NFL payments deal reportedly worth up to $900 million, which includes presale access and a co-branded credit card. Concurrently, Amazon is transitioning its small-business card program from American Express to U.S. Bank, leveraging Mastercard, a move that will affect existing AmEx small-business cardholders. This news presents a mixed outlook for American Express; while the NFL partnership is a new positive development, the loss of the Amazon small-business card program represents a competitive setback, particularly given AXP's recent focus on expanding its small and mid-market business offerings. The NFL deal's financial impact is spread over seven years, making its annual contribution relatively modest compared to AXP's overall scale. However, the loss of the Amazon partnership signifies a direct loss of transaction volume and customer relationships from a major e-commerce player, which could materially affect AXP's small-business segment. Investors will be keen to assess the financial implications of losing the Amazon partnership and monitor the success of the new NFL co-branded offerings.
At the time of this announcement, AXP was trading at $302.53 on NYSE in the Finance sector, with a market capitalization of approximately $207.7B. The 52-week trading range was $220.43 to $387.49. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Wiseek News.