US Stocks Movement | American Express (AXP.US) drops over 6%, Q2 spending growth outpaces revenue and may squeeze profit margins

According to Zhihui Finance APP, on Friday, American Express (AXP.US) fell more than 6% to close at $318.88. According to reports, American Express’ second quarter financial report as of June 30 showed: total revenue (excluding interest expenses) reached $19.637 billion, up 10% year-on-year, slightly below market expectations of $19.69 billion; net profit was $3.11 billion, an increase of 8% year-on-year (compared to $2.885 billion in the same period last year); diluted earnings per share (EPS) were $4.53, up 11% year-on-year and higher than analysts’ expectations of $4.40. The company's total expenses rose 12% year-on-year, exceeding the 10% growth in revenue, mainly driven by rising customer engagement costs resulting from increased cardholder spending, the refresh and upgrade of the US Platinum Card, and higher utilization rates of cardholder benefits, causing concerns in the market about margin pressure. Zacks analysts had previously warned that rising customer engagement costs associated with increased cardholder spending and higher usage of travel and lifestyle benefits could compress profit margins.