American Express Co
AXP’s Valuations Down in 4Q15, Targeted $1 Billion in Savings
American Express (AXP) expects its full-year 2016 EPS to be between $5.40–$5.70. It looks to return to positive EPS growth in 2016 and is targeting a minimum of $5.60 EPS for 2017.
Inside Berkshire’s Investment Income and Valuations after 3Q17
As of October 2017, Berkshire Hathaway (BRK.B) stock has returned 3.2% in the past month and 31.4% over the past four quarters.
A Look at the Trend in American Express’s Total Revenues
American Express’s (AXP) total revenues (net of interest expense) were $8.8 billion in 4Q17 compared to $8 billion in 4Q16.
Mergers and Marketing Efforts Pressure MasterCard’s Margins
MasterCard’s rebates and incentives rose by 18% to $1.0 billion in 1Q16—higher than expected, mainly due to the timing of some deals and acquisitions.
Blue Harbour Opens New Position in Alliance Data Systems
Blue Harbour initiated a new position in Alliance Data Systems (ADS) in 4Q14. It bought 1,153,390 shares worth $43 million. ADS accounts for 1.41% of the fund’s portfolio.
Visa Expected to Post Healthy Margins in Fiscal 3Q16
Visa (V) has maintained its operating margin above 60% over the past few years. The company’s major expenses include personnel, marketing, network and processing, and professional fees.
Increased Spending, Electronic Payments Beneficial for Visa
Visa’s total transactions grew by 11% on a YoY (year-over-year) basis in fiscal 4Q15. The company reported total transactions of 27.9 billion in fiscal 4Q15, as compared to 25 billion in fiscal 4Q14.
MasterCard’s Performance to Be Driven by Investments, Expansions
MasterCard (MA) is expected to release its 1Q17 earnings on April 27, 2017. Its EPS is expected to be $0.94, a 9.3% rise year-over-year.
What to Expect from Visa in Fiscal Q3 2018
Visa (V) is expected to post EPS (earnings per share) of $1.11 in the third fiscal quarter (ending in June), boosted by strong business fundamentals.
How Payment Processors Are Performing amid Challenges in 2016
Payment processors are seeing major changes in 2016, including increased competition on pricing and the adoption of new technologies such as wearables.
Which Payment Processor Has the Highest Payouts and Repurchases?
Payment processors are rewarding their shareholders with 1%–2% dividend yields, largely dependent on operating performance.
MasterCard’s Leverage Is Comfortable for Expansion, Acquisitions
MasterCard (MA) has debt of $3.3 billion with a total balance sheet of $15.9 billion as of March 31, 2016. This compares to $16.2 billion in 4Q15.
IMF and ECB Advocate Central Bank Independence
Despite frequent criticism from Trump, the Fed went ahead with four rate hikes last year.
Mastercard Benefited from Certain Regions
Mastercard benefited from the Latin America region. The region witnessed favorable momentum in consumer confidence and lower unemployment.
Can American Express Distributions Continue to Attract Investors?
American Express (AXP) has been using its strong balance sheet position to consistently declare dividends to its shareholders.
Shop Local with American Express During Small Business Saturday
A Detailed Holdings Analysis of DCMSX
The holdings of the DFA Commodity Strategy Portfolio – Institutional Class (DCMSX) mainly consist of corporate and government bonds.
Apple Pay Beats eBay and Google in In-Store Mobile Payments
Apple Pay beat eBay’s PayPal and Google in in-store mobile payments. PayPal’s strong relationship with retailers places it as a significant player in this space.
Bridgewater Associates reduces position in Microsoft
Bridgewater Associates reduced its position in Microsoft. According to 13F filings for 3Q14, it accounts for 0.01% of the total portfolio.
How Has DCMSX Performed Compared with Its Peers?
The DFA Commodity Strategy Portfolio – Institutional Class (DCMSX) is an alternative mutual fund that uses a commodity hedge fund return strategy.
Discover Financial: Tax Cuts and Payment Services Division
Discover Financial’s (DFS) Payment Services segment saw a rise in its pretax income from $107.0 million in 2016 to $145.0 million in 2017.
A Look at Apple’s Evolution in the Payment-Processing Market
Apple could disrupt the business of established players PayPal and Square in the person-to-person payment-processing market.
Boeing Stock: Worst Weekly Fall since 2016
Boeing stock fell 10.3% last week—the biggest weekly loss in the last three years. The stock fell 11.4% during the week ending February 12, 2016.
This Move Could Increase Mastercard’s Transaction Volumes
On April 9, 2018, Mastercard (MA) made an announcement regarding the integration of its Masterpass service with the My Phillips 66 app.
Can Samsung Pay Mini Put Pressure on Apple Pay?
In what appears to be a major break from industry tradition and a possible setback for Apple (AAPL), Samsung (SSNLF) is expanding the availability of its mobile payment service, Samsung Pay.
Could Investing in DCMSX Help Your Portfolio?
DCMSX is an alternative mutual fund that has suffered due to its commodity real return strategy.
A Look at Discover’s Direct Banking Segment
Discover Financial Services’ (DFS) Direct Banking segment generated pretax income of $3.4 billion in 2017.
Investors should watch Discover’s stock in the longer term
Discover Financial’s (DFS) stock price rose from $14.70 at the end of 2009 to $65.50 at the end of 2014. This is an increase of 346%.
Bitcoin Participants Saw Duplicate Transactions
Worldpay (WP) and Visa (V) said Bitcoin participants who have executed transactions on Coinbase through debit or credit card may have come across duplicate transactions.
A Look at Discover’s Discounted Valuations
Discover Financial Services (DFS) has a price-to-earnings ratio on an NTM (next-12-months) basis of ~8.9x, which highlights its lower valuations.
Discover Financial Increases Dividends in 1Q15
During 1Q15, Discover repurchased ~6 million shares of common stock. This resulted in a 1% decline in the common stock outstanding from the previous quarter.
A Look at Berkshire Hathaway’s Top Stock Holdings in 2Q17
According to the institutional ownership report, Berkshire Hathaway is the largest investor in Kraft Heinz with 325.6 million shares as of June 30, 2017.
Markets Give a Thumbs Up to ‘True Merger of Equals’
Today, Sun Trust Banks and BB&T announced a merger that would create the sixth largest bank in the United States.
American Express Misses Q3 Earnings Forecast, Stock Falls
What to Watch for in American Express’s Q3 Earnings
American Express Points Don't Expire, but You Can Lose Them!
Must-know: Concur is the biggest acquisition in SAP’s history
Since 2010, SAP AG (SAP) spent more than ~$12 billion on acquisitions. Concur Technologies is the largest acquisition in SAP’s 42-year history. In its 2Q14 results, most of SAP’s growth was from its cloud business—approximately $1 billion annually. Concur’s management mentioned that they expect to end fiscal year 2014 with ~$690 million.
Who Would Bid for American Express?
Wells Fargo seems unlikely to put capital on a falling brand like American Express, unless Warren Buffett has a different perspective and backs a takeover.
Why is Apple looking to partner with payment networks?
Apple is expected to release the iPhone 6 on September 9. Its success could make people forget these issues. In addition to a bigger-screen iPhone 6, Apple is expected to introduce a few more attractive features.
Bridgewater Associates starts new position in American Express
Bridgewater Associates started a new position in American Express. According to 13F filings for 3Q14, it accounts for 0.15% of the total portfolio.
Will MasterCard’s Distributions Outperform Visa’s?
MasterCard (MA) has been paying dividends on its outstanding common stock for the past few quarters and is expected to continue this legacy.
Analysts Are Bullish on Diversified Financial Services Stocks
Of the 285 analysts covering the diversified financial services sub-group, there are 162 “buy,” 15 “sell,” and 108 “hold” ratings on the group.
Is American Express a Stock for Value Investors?
Wall Street analysts have given a price target of $84.84 on Amex stock, which implies a rise of 0.6% from its current price level.
Visa Processed Transactions in Line with Expectations
Visa (V) reported total processed transactions of 27.9 billion in 4Q15 compared to 25 billion in 4Q14. Total transactions are payments and cash transactions reported by clients on operating certificates.
Stock Markets Posted Weekly Gains as Oil Prices Recovered
US markets gained on Friday, January 22, 2016, backed by a recovery in oil prices. Although broad markets gained during the week, the financial sector continued to see weakness.
Payment Processors Dividends Are Now Rising on This
Payment processors are rewarding their shareholders with dividend yields of 1%–2%, depending largely on operating performance.
Visa Payment Volume Grew on Higher International Spending
Visa saw growth in its international payments volume on a constant dollar basis, mainly due to spending in Sub-Saharan Africa and Mexico.
Capital One by Segment in 4Q15
In 4Q15, Capital One’s non-performing loans in its Commerical Banking segment increased to $550 million due to downgrades of oil and gas loans.
Visa Establishes Partnerships to Expand in China
Visa announced partnerships with the China Foundation for Development of Financial Education and the China Foundation for Poverty Alleviation.
Is AXP Stock a ‘Sell’ after Its Q1 Earnings?
Today at 7:02 AM ET, AXP stock rose 1.1% to $84.10 in the pre-market session. The company reported its first-quarter earnings results on April 24.
Why Apple Has Been a Savior for Buffett and Berkshire
Berkshire Hathaway Class B shares have fallen 25% in 2020, while the S&P 500 has fallen 28.5%. Apple (NASDAQ:AAPL) is Berkshire Hathaway’s biggest holding.
Delta Stock Soars on Optimistic 2020 Earnings Outlook
Delta Air Lines (DAL) stock soared 3% yesterday after the company provided an optimistic 2020 earnings outlook and disclosed a new investment.
What Berkshire Hathaway Really Does, Says Buffett
Berkshire Hathaway is a huge conglomerate with diverse operations. The company’s operations are complex, so let’s take an easy-to-understand approach.
Citigroup cards: A card for everyone
Balance transfer Citigroup cards allow you to transfer your balances from a high-interest credit card to a Citi low-interest card.
Card shark Citigroup plays for major revenue
Citigroup is the world’s largest credit card issuer. Bank of America and Capital One follow Citigroup in terms of credit and charge volume.
Factors Likely to Impact Costco’s Future Earnings
Consensus Wall Street analyst estimates project revenue of $27.6 billion for Costco in fiscal 3Q16—an implied increase of 3.4% YoY.
Card loans rule Bank of America’s consumer loan portfolio
Credit card loans account for more than half of Bank of America’s total consumer loan portfolio.
How Berkshire Hathaway’s Holdings Changed in Q3
On Thursday, Berkshire Hathaway (BRK.B) (BRK.A) released its third-quarter 13F. There were some surprises in the filing. The company took a new stake in RH.
Renaissance Technologies: Analyzing Its Q3 13F
At the end of the third quarter, Bristol-Myers Squibb, Celgene, Biogen, UnitedHealth, and Walmart (WMT) were Renaissance Technologies’ top five buys.
Visa Collaborated with PayPal to Expand in Europe
Visa (V) reported strong net revenues in fiscal 3Q17 on the back of processed transactions, cross-border volumes, and payments volumes.
US GDP Shatters Expectations, Pessimists Run for Cover
The US GDP increased at an impressive rate of 1.9% for the third quarter. The growth beat the expectations of around 1.6% for the quarter.
Are Mastercard’s Earnings Results a Win for America?
Mastercard just posted a solid earnings beat. It’s been a blockbuster Q3 for payment companies, with Visa and American Express beating projections, too.
American Express Stock Dips Despite Q3 Revenue Beat
American Express Company (AXP), the New York-based financial services company, released its third-quarter earnings on Friday.
Delta Beats Q3 Estimates, Shares Fall on Revenue Miss
Delta Air Lines (DAL) reported mixed third-quarter results this morning. Its earnings beat analysts’ consensus estimate, but its revenue missed.
Delta Air Lines: Will Its Q3 Earnings Keep Its Streak Alive?
Delta Air Lines (DAL) could register strong year-over-year growth in its Q3 earnings, mainly driven by higher revenues and moderate fuel costs.
Mario Gabelli: What To Do if Market Declines
On August 24, in an interview with CNBC, Mario Gabelli encouraged value investing. He is the CEO, chairman, and founder of GAMCO Investors.
Will Delta Benefit from Partnership with LATAM?
On Thursday, Delta Air Lines announced a partnership with LATAM Airlines in a deal worth $2.25 billion. Delta will acquire a 20% stake in LATAM.
DJIA Ends Day in Green despite Europe’s Grim Data
The Dow Jones Industrial Average Index or DJIA gained a marginal 0.06% today to close trading just below 27,000—despite a bleak picture in Europe’s economy.
Dow Jones Reverses Early Gains, Falls 0.2% Today
The Dow Jones Industrial Average fell 53.44 points (or 0.2%) today, possibly because the market gave a thumbs up to yesterday’s 0.25% rate cut by the Fed.
Dow Jones Index Falls after Rising for Eight Days
The Dow Jones Industrial Average Index has fallen 0.4% or by 115 points today. The index is trading lower after rising for eight consecutive trading sessions.
How Warren Buffett’s Banking Investments Look after Q2
Warren Buffet loves banking stocks. Out of his current portfolio of 47 stocks, five are commercial banks, including two regional banks.
Why American Express’s Q2 Earnings Rose
American Express (AXP) reported its second-quarter earnings results on Friday before the market opened. Its EPS beat analysts’ consensus estimate.
Analyzing Visa’s Valuation after Its Q2 Earnings
Visa (V) is trading at a forward PE ratio of 27.7x, which is higher than its five-year average PE ratio of 24.5x.
Berkshire-Backed StoneCo Tumbles after ITUB Ups Ante
StoneCo (STNE) was trading down 27.6% as of 1:30 PM ET. The negative price action was driven by an announcement by Itaú Unibanco Holding (ITUB).
Visa: Analysts Are Bullish before Its Earnings
Visa (V) has seen three upward revisions in its target price in April. On April 10, Cowen increased its target price for Visa from $161 to $177.
How Visa Stock Might Perform until Its Earnings
The implied volatility in Visa fell by ~12.5 percentage points from January 2 to 18.73% on April 12. Visa stock has risen ~21% during this period.
Will Visa Exceed Its Earnings Estimates Again?
Visa (V) is scheduled to report its second-quarter earnings on April 24. In the quarter ending December 31, Visa reported 7% sequential EPS growth.
Delta Airlines Gains on Upbeat Q1 Earnings and Strong Outlook
Delta Airlines stock was up 3% in premarket trading on April 10 after it released better-than-expected results for the first quarter.
Delta-AmEx Renewed Partnership Likely to Drive Revenues
Delta-AmEx renewed deal On April 2, Delta Air Lines (DAL) announced that it had renewed its 23-year long credit-card partnership with American Express (AXP) for another 11 years. The renewed partnership deal, which will run through 2029, is likely to bring in massive incremental revenues for the airline in the next few years. With this […]
Delta Ups Q1 Outlook on Healthy Demand and New Credit Deal
Raises outlook Delta Air Lines (DAL) shares jumped over 6% on April 2 after the company increased its first-quarter guidance. The airline cited robust passenger demand and a renewed credit-card deal with American Express (AXP) as the main reasons behind the upbeat guidance. Delta now expects its first-quarter revenues to increase by 7% YoY (year-over-year), […]
Berkshire Hathaway: Payment Industry in Q1
Berkshire Hathaway (BRK-B) has invested in several payment industry stocks like Visa (V), Mastercard (MA), American Express (AXP), and StoneCo.
Berkshire Hathaway’s Banking Holdings in Q1
Among Berkshire Hathaway’s financial holdings, JPMorgan Chase was the worst performer, while Goldman Sachs was the top performer.
How Warren Buffett Views Apple’s Big Bets on Payment Industry
Earlier this week, Apple (AAPL) announced new services including video streaming, a gaming subscription, and a credit card in partnership with Goldman Sachs (GS).
Was Buffett’s Right Hand, Charlie Munger, Right about Elon Musk?
In the previous part of this series, we discussed why Tesla’s (TSLA) CEO, Elon Musk, might be on the verge of more trouble.
Why Warren Buffett Abandoned an Age-Old Practice This Year
Warren Buffett said, “For nearly three decades, the initial paragraph featured the percentage change in Berkshire’s per-share book value. It’s now time to abandon that practice.”
‘Weapons of Mass Destruction’ Cost Berkshire $300 Million in 2018
In his 2002 shareholder letter, Berkshire Hathaway (BRK-B) chair Warren Buffett shared his views on derivatives.
Buffett to Investors: ‘Focus on the Forest, Forget the Trees’
One of the world’s most successful investors of all times, Warren Buffett believes in investing for the long term.
Warren Buffett’s Firm Earns $3.8 Billion in Dividends in 2018
In Berkshire Hathaway’s (BRK-B) annual shareholder letter, Buffett revealed that his investment firm received dividends of about $3.8 billion from its investees in 2018.
Warren Buffett Shows Why He’s Still the King of Investing
In the previous part of this series, we looked at Berkshire Hathaway’s (BRK-B) huge losses of over $25 billion in the fourth quarter of 2018.
Warren Buffett’s Berkshire Hathaway Lost $25.4 Billion in Q4 2018
On Saturday, February 23, Warren Buffett’s Berkshire Hathaway (BRK-B) released its fourth-quarter earnings report.
Warren Buffett and the Problem with Elephants
In the annual shareholder letter, Buffett lamented the lack of big acquisition opportunities, which he called “elephants.”
Buffett’s Love for Banking Stocks Continued in Q4
Berkshire Hathaway is the largest shareholder in Wells Fargo (WFC), Bank of America (BAC), U.S. Bancorp (USB), and American Express (AXP).
Dan Loeb Increased Third Point’s Position in These Stocks in Q4
In Q4 2018, Third Point initiated a new position in Cigna (CI), which is an American healthcare services organization.
Will Warren Buffett’s Huge Bets on the Banking Sector Continue?
In the first three quarters of 2018, world-renowned billionaire investor Warren Buffett’s Berkshire Hathaway increased its bets on the banking sector.
How Buffett’s Top Ten Holdings Fared in Q4
Apple (AAPL), which was Buffett’s top holding at the end of the third quarter, saw a selling spree in the fourth quarter.
Buffett Raised Bets on U.S. Bancorp and Goldman Sachs in Q3 2018
So far in this series, we’ve looked at Warrant Buffet’s investment firm, Berkshire Hathaway’s (BRK.A)(BRK.B), top five investments in the third quarter.
Mastercard Stock Soars on Stunning Q3 2018 Results
Mastercard (MA) stock rose ~3% in premarket trading on October 30 following its announcement of its impressive third-quarter results.
Behind the PayPal–Amex Partnership
PayPal finished the third quarter with 254.0 million active customers on its platform.
Visa’s Q4 Profit Jumps 34%: A Look at Key Growth Drivers
Visa’s adjusted fourth-quarter EPS jumped 34% year-over-year to $1.21 and surpassed Wall Street analysts’ estimates by a penny.
Improving Economy and Retail Sales to Boost Mastercard’s Q3 Results
A healthy job market and a steady hike in wages have increased the spending power of consumers.