AmEx, PayPal, and the Consumer
American Express Co. beat estimates on both top and bottom lines on its earnings report Thursday afternoon. Higher card member spending did the trick, as did a combination of higher net interest margins, as a result of hiked interest rates, and higher loam volumes. My source from TD Ameritrade told me the consumer looks strong, at least for now. PayPal Holdings Inc. also beat expectations on both top and bottom lines, with a similar story to AmEx. Also notable, PayPal’s Venmo is looking like a stronger business unit.
PayPal is TheStreet’s RealMoney stock of the day.
Both companies raised guidance as well. How much stronger can the American consumer get? Where are we in the economic cycle. The conversation just got more interesting.
Apple’s Services Revenue Down Slightly?
That’s according to a note out from Morgan Stanley. “App Store net revenue of $3.6B fell short of $3.8B,” the note said. The Chinese economy also has emerged as another headwind to Apple’s app store revenue in the country. “Fear of economic slowdown in China presents a near-term overhang,” the note said. Indeed, news came out Thursday evening that the Chinese economy is slowing, as many have feared.
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