Market Rotation: Software to Hardware Shift
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 23 2026
0mins
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: 340.540
Low
280.00
Averages
379.06
High
425.00
Current: 340.540
Low
280.00
Averages
379.06
High
425.00
About AXP
American Express Company is a globally integrated payments company with card-issuing, merchant-acquiring and card network businesses. It offers products and services to a range of customers, including consumers, small businesses, mid-sized companies and large corporations around the world. Its segments include U.S. Consumer Services (USCS), Commercial Services (CS), International Card Services (ICS) and Global Merchant and Network Services (GMNS). USCS offers travel and lifestyle services as well as banking and non-card financing products. CS offers payment and expense management, banking and non-card financing products. ICS provides services to international customers, including travel and lifestyle services, and manages certain international joint ventures and its loyalty coalition business. GMNS operates a payments network that processes and settles card transactions, acquires merchants and provides multichannel marketing programs and capabilities, services and data analytics.
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.
Comparing American Express and Visa: Market Dynamics
- Transaction Volume Growth: In Q2 2026, Visa processed 66.1 billion transactions, a 9% increase year-over-year, leading to a 17% revenue growth and a 20% rise in adjusted earnings, showcasing its robust performance in the payment market.
- Customer Spending Increase: American Express saw a 10% rise in cardmember spending in Q1 2026, boosting revenue by 11% and adjusted earnings by 15%, indicating resilience in the high-end market despite underperforming Visa.
- Market Positioning Differences: American Express focuses on wealthier customers with a smaller base, while Visa serves a broad range from high to low-end consumers, partly explaining the differing financial results between the two companies.
- Long-Term Growth Potential: Visa benefits from the transition from cash to card payments, with expectations of continued expansion in customer base and transaction volume, while American Express may maintain high-end customer spending resilience during economic downturns, though its long-term growth is limited by its target customer pool size.
See More
Investment Comparison: American Express vs. Visa
- Financial Performance Comparison: In Q2 2026, Visa processed 66.1 billion transactions, a 9% increase year-over-year, driving a 17% revenue growth and a 20% rise in adjusted earnings, highlighting its strong market position and profitability.
- Customer Spending Growth: In Q1 2026, American Express cardmember spending rose by 10%, boosting the company's revenue by 11% and adjusted earnings by 15%, indicating resilience in high-end consumer spending despite underperforming compared to Visa.
- Market Positioning Differences: American Express focuses on affluent customers with a smaller base, while Visa serves a broad range from high-end to low-end consumers, giving Visa a growth advantage, especially amid the ongoing shift from cash to card payments.
- Valuation Analysis: Visa's price-to-earnings ratio stands at 28x, above American Express' 20x, indicating that while American Express appears cheaper, Visa's P/E is below its five-year average, making it relatively attractive for growth-focused investors.
See More
American Express Partners with NFL for Global Payments Deal
- Strong Market Returns: As of June 16, American Express has delivered a total return of 114% over the past five years, showcasing its robust performance in financial services and payments, which has attracted significant investor interest.
- Expansion in Sports: The new multiyear global payments partnership with the NFL, starting in the 2026 season, aims to enhance American Express's market penetration in sports by offering unique experiences and presale ticket access to card members.
- Strengthening Customer Base: A survey from January 2026 indicates that nearly 80% of American Express Consumer Card Members are sports fans, and the NFL partnership is expected to attract new customers, driving continued growth for the company.
- Enhancing Brand Value: The collaboration with the NFL not only supports increased spending activity among card members but also reinforces American Express's position as a premium brand in the competitive financial services industry, helping it stand out in a crowded market.
See More
American Express Partners with NFL for Exclusive Cardholder Benefits
- Strategic Partnership Highlight: American Express has signed a multiyear global payments partnership with the NFL, set to commence in the 2026 season, which not only enhances brand influence but also provides cardholders with unique experiences and ticket opportunities.
- Customer Base Expansion: As of March 31, American Express had 153.9 million cards in force, a 4% year-over-year increase, closely tied to the NFL partnership aimed at attracting more sports fans as new customers.
- Market Value Enhancement: The average market value of NFL teams stands at $7.1 billion, reflecting a 25% annual growth, underscoring American Express's competitive advantage in high-value markets and solidifying its position as a premium financial services provider.
- Increased Brand Appeal: A survey indicates that nearly 80% of U.S. American Express Consumer Card Members are sports fans, and this partnership not only meets customer demand but may also drive higher spending activity, thereby enhancing the company's overall performance.
See More
Three Trillion-Dollar Companies to Watch
- Walmart's E-commerce Surge: Walmart became the first traditional retailer to surpass a $1 trillion market valuation in 2026, with its e-commerce business now accounting for 18% of total revenue, growing 24% to $150 billion, highlighting its technology-driven transformation in retail.
- Member Spending Trust: Costco saw a 7.3% increase in average transaction size globally during economic downturns, with membership fee income rising 13.6%, reflecting consumer trust in its value proposition, now boasting 82.1 million paid household members, enhancing brand loyalty.
- Berkshire's Strategic Acquisition: Under new CEO Greg Abel, Berkshire Hathaway acquired Taylor Morrison, merging it into one of the largest homebuilding platforms in the U.S. to address a 7 million home deficit, showcasing its strategic positioning in the real estate market.
- Diversified Investments: Berkshire also made a $10 billion investment in Alphabet, elevating it to one of the top four holdings, further enhancing its influence in the tech sector and demonstrating the diversity and durability of its investment portfolio.
See More
Walmart and Costco Leverage AI to Enhance Customer Loyalty
- Walmart's Technological Breakthrough: Walmart became the first traditional retailer to surpass a $1 trillion market valuation in February 2026, with its e-commerce business representing 18% of total revenue and growing 24% to $150 billion, showcasing successful technology investments that enhance market competitiveness.
- Same-Day Delivery Service: Walmart's same-day delivery now reaches 95% of U.S. households, a logistics achievement that sets it apart in the industry, improving consumer shopping experiences by ensuring that customers can find what they need at 11 p.m. and receive it the next morning.
- Costco's Membership Growth: Costco saw a 7.3% increase in average transaction size globally in Q3, with membership fee income rising 13.6%, now counting 82.1 million paid household members, demonstrating its ability to attract consumers even during economic downturns and enhancing brand loyalty.
- Fuel Price Appeal: Costco's fuel prices have become a significant draw amid rising gasoline costs, directly passing tariff savings to consumers, further solidifying brand trust and ensuring long-term customer loyalty.
See More
Comparing American Express and Visa: Market Dynamics
- Transaction Volume Growth: In Q2 2026, Visa processed 66.1 billion transactions, a 9% increase year-over-year, leading to a 17% revenue growth and a 20% rise in adjusted earnings, showcasing its robust performance in the payment market.
- Customer Spending Increase: American Express saw a 10% rise in cardmember spending in Q1 2026, boosting revenue by 11% and adjusted earnings by 15%, indicating resilience in the high-end market despite underperforming Visa.
- Market Positioning Differences: American Express focuses on wealthier customers with a smaller base, while Visa serves a broad range from high to low-end consumers, partly explaining the differing financial results between the two companies.
- Long-Term Growth Potential: Visa benefits from the transition from cash to card payments, with expectations of continued expansion in customer base and transaction volume, while American Express may maintain high-end customer spending resilience during economic downturns, though its long-term growth is limited by its target customer pool size.
See More
Investment Comparison: American Express vs. Visa
- Financial Performance Comparison: In Q2 2026, Visa processed 66.1 billion transactions, a 9% increase year-over-year, driving a 17% revenue growth and a 20% rise in adjusted earnings, highlighting its strong market position and profitability.
- Customer Spending Growth: In Q1 2026, American Express cardmember spending rose by 10%, boosting the company's revenue by 11% and adjusted earnings by 15%, indicating resilience in high-end consumer spending despite underperforming compared to Visa.
- Market Positioning Differences: American Express focuses on affluent customers with a smaller base, while Visa serves a broad range from high-end to low-end consumers, giving Visa a growth advantage, especially amid the ongoing shift from cash to card payments.
- Valuation Analysis: Visa's price-to-earnings ratio stands at 28x, above American Express' 20x, indicating that while American Express appears cheaper, Visa's P/E is below its five-year average, making it relatively attractive for growth-focused investors.
See More
American Express Partners with NFL for Global Payments Deal
- Strong Market Returns: As of June 16, American Express has delivered a total return of 114% over the past five years, showcasing its robust performance in financial services and payments, which has attracted significant investor interest.
- Expansion in Sports: The new multiyear global payments partnership with the NFL, starting in the 2026 season, aims to enhance American Express's market penetration in sports by offering unique experiences and presale ticket access to card members.
- Strengthening Customer Base: A survey from January 2026 indicates that nearly 80% of American Express Consumer Card Members are sports fans, and the NFL partnership is expected to attract new customers, driving continued growth for the company.
- Enhancing Brand Value: The collaboration with the NFL not only supports increased spending activity among card members but also reinforces American Express's position as a premium brand in the competitive financial services industry, helping it stand out in a crowded market.
See More
American Express Partners with NFL for Exclusive Cardholder Benefits
- Strategic Partnership Highlight: American Express has signed a multiyear global payments partnership with the NFL, set to commence in the 2026 season, which not only enhances brand influence but also provides cardholders with unique experiences and ticket opportunities.
- Customer Base Expansion: As of March 31, American Express had 153.9 million cards in force, a 4% year-over-year increase, closely tied to the NFL partnership aimed at attracting more sports fans as new customers.
- Market Value Enhancement: The average market value of NFL teams stands at $7.1 billion, reflecting a 25% annual growth, underscoring American Express's competitive advantage in high-value markets and solidifying its position as a premium financial services provider.
- Increased Brand Appeal: A survey indicates that nearly 80% of U.S. American Express Consumer Card Members are sports fans, and this partnership not only meets customer demand but may also drive higher spending activity, thereby enhancing the company's overall performance.
See More
Three Trillion-Dollar Companies to Watch
- Walmart's E-commerce Surge: Walmart became the first traditional retailer to surpass a $1 trillion market valuation in 2026, with its e-commerce business now accounting for 18% of total revenue, growing 24% to $150 billion, highlighting its technology-driven transformation in retail.
- Member Spending Trust: Costco saw a 7.3% increase in average transaction size globally during economic downturns, with membership fee income rising 13.6%, reflecting consumer trust in its value proposition, now boasting 82.1 million paid household members, enhancing brand loyalty.
- Berkshire's Strategic Acquisition: Under new CEO Greg Abel, Berkshire Hathaway acquired Taylor Morrison, merging it into one of the largest homebuilding platforms in the U.S. to address a 7 million home deficit, showcasing its strategic positioning in the real estate market.
- Diversified Investments: Berkshire also made a $10 billion investment in Alphabet, elevating it to one of the top four holdings, further enhancing its influence in the tech sector and demonstrating the diversity and durability of its investment portfolio.
See More
Walmart and Costco Leverage AI to Enhance Customer Loyalty
- Walmart's Technological Breakthrough: Walmart became the first traditional retailer to surpass a $1 trillion market valuation in February 2026, with its e-commerce business representing 18% of total revenue and growing 24% to $150 billion, showcasing successful technology investments that enhance market competitiveness.
- Same-Day Delivery Service: Walmart's same-day delivery now reaches 95% of U.S. households, a logistics achievement that sets it apart in the industry, improving consumer shopping experiences by ensuring that customers can find what they need at 11 p.m. and receive it the next morning.
- Costco's Membership Growth: Costco saw a 7.3% increase in average transaction size globally in Q3, with membership fee income rising 13.6%, now counting 82.1 million paid household members, demonstrating its ability to attract consumers even during economic downturns and enhancing brand loyalty.
- Fuel Price Appeal: Costco's fuel prices have become a significant draw amid rising gasoline costs, directly passing tariff savings to consumers, further solidifying brand trust and ensuring long-term customer loyalty.
See More
