AmEx's Expense Ramp-Up Has Been Extremely Successful, but the Next Few Years Will Be Critical
The credit card and payments company American Express (NYSE: AXP) has been a great stock for quite a while now, and trades at a premium valuation.
But no matter how successful a company is, the market is always going to raise an eyebrow when investors see expenses materially increasing, because that cuts into profits. AmEx has been ramping up expenses in recent years to drive its new strategy and build scale. So far, those expenses seem to be well worth it, with the company providing excellent guidance for the year.
But investors will be monitoring the situation closely to ensure that those expenses translate into good longer-term results, which is why the next few years will be crucial for the company.
Source Fool.com
