American Express Earnings Beat Expectations. Why Its Stock Is Dropping.

Carleton English
·2 min read

(AXP) shares dipped in premarket trading Tuesday despite the card issuer posting better-than-expected fourth quarter results. Shares were down as much as 2.7% ahead of Tuesday’s open as investors appeared to focus on management at American Express (ticker: AXP) expressing caution about the pace of the economic recovery and calling 2021 a “transition year.” American Express posted fourth quarter earnings of $1.4 billion, or $1.76 per share, on revenue of $9.4 billion.