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American Express eyes upside as Cramer points to strong travel demand
The segment cited travel-demand strength ahead of American Express's upcoming quarterly report and highlighted a technical breakout above its 200-day moving average.
Yahoo Finance recapped a segment on CNBC's Mad Money in which Jim Cramer used options trader Bob Lang's chart work to assess American Express ahead of its quarterly report. The discussion focused on how American Express's cardholder base and annual fee model tie into travel demand, and why Cramer considers the issuer a core allocation holding.
Cramer highlighted that American Express has about 10% of purchase volume, with fewer cards in circulation than rival networks Visa and Mastercard. He also described the business model as premium annual fee driven, while noting that American Express, unlike Visa and Mastercard, carries credit risk because it directly issues cards.
On the technical side, the outlet said Cramer pointed to strength relative to broader market moves. Yahoo Finance reported that after breaking above its 200-day moving average in early June, the stock retested that support level multiple times before moving higher on heavy volume, with MACD flashing a buy signal.
The segment further cited upside targets from Lang's outlook, including a path toward $350 and a secondary target at the February peak near $370, which was also described as a prior area where sellers emerged.