Market Rotation: Software to Hardware Shift
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 23 2026
0mins
Should l Buy AXP?
Source: CNBC
- Market Dynamics: During Thursday's livestream, Jim Cramer highlighted that the S&P 500 and Nasdaq indices experienced a rotation from software to hardware following a 17% drop in ServiceNow shares, which, despite beating earnings expectations, cited the Iran war as a drag on subscription revenue growth.
- Hardware Stock Performance: Chip designer Arm led the hardware rally with a roughly 6% increase, reaching all-time highs, and has risen over 20% since we initiated a position three days ago; Jim called it an 'incredible move' but expressed concerns about CEO Rene Haas's expanded role at SoftBank.
- Procter & Gamble Outlook: Procter & Gamble's stock rose over 1%, trading around $145, with Jim indicating he would consider buying more if it drops below $140, expressing optimism about new CEO Shailesh Jejurikar, while the Street anticipates about 1% EPS growth and slightly below 2% organic revenue growth.
- Quick Recap: In Thursday's rapid-fire segment, Jim covered stocks including American Express, IBM, Tesla, Texas Instruments, and Thermo Fisher, emphasizing his ongoing focus on these companies and reminding subscribers that they will receive trade alerts before any transactions.
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Analyst Views on AXP
Wall Street analysts forecast AXP stock price to rise
21 Analyst Rating
8 Buy
12 Hold
1 Sell
Moderate Buy
Current: 318.690
Low
280.00
Averages
379.06
High
425.00
Current: 318.690
Low
280.00
Averages
379.06
High
425.00
About AXP
American Express Company is a global payments and premium lifestyle brand powered by technology. Its card-issuing, merchant-acquiring and card network businesses offer products and services to a broad range of customers, including consumers, small businesses, mid-sized companies and large corporations around the world. Its range of products and services includes credit and charge cards and complementary products and services, including travel, dining, lifestyle and expense management products and services; banking and other payment and financing products and services, including deposits and non-card lending; merchant acquisition and processing, servicing and settlement, fraud prevention, and point-of-sale marketing and information products and services, and network services. These products and services are offered through various channels, including mobile and online applications, affiliate marketing, customer referral programs, third-party service providers, and business partners.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Restaurant Sector Challenges: Reports from Papa John's and McDonald's indicate that the former experienced a 6.4% decline in same-store sales, while the latter relied heavily on value meals to navigate economic pressures, suggesting even strong brands are not immune to economic slowdowns, potentially affecting their market share.
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- Business Model Advantage: Visa's partnership model with banks rather than issuing its own cards allows for rapid expansion and the introduction of value-added services like cybersecurity and data analytics, enhancing its competitive edge and customer stickiness.
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- Long-Term Growth Outlook: Analysts expect Visa's revenue and EPS to grow at CAGRs of 11% and 18% from fiscal 2025 to 2028, and despite facing inflation and regulatory pressures, its strong market position and business model suggest it remains a valuable investment for the future.
See More
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- High-End Consumer Spending Rebounds: Despite economic pressures, restaurant and airline spending rose by 9% and 8% respectively, indicating the continued strong purchasing power of affluent customers, which further solidifies American Express's market position.
- Stable Outlook: While the market remains cautious about future marketing and technology expenditures, American Express still anticipates revenue growth of 9% to 10% by 2026, reflecting management's confidence in the company's long-term growth prospects.
- Investor Caution: Despite strong performance, the stock price fell due to failure to raise future guidance, highlighting a gap between investor expectations for future growth and the company's actual projections.
See More
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- Affluent Customer Spending: Despite a challenging economic backdrop, spending from affluent customers remained robust, with restaurant spending up 9% and airline spending up 8%, indicating the strength of American Express's customer base during economic fluctuations.
- Future Growth Outlook: The company anticipates revenue growth between 9% and 10% for 2026, with earnings per share projected between $17.30 and $17.90; although the market was disappointed by the lack of an upward revision, it still reflects stable growth potential.
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