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: 315.950
Low
280.00
Averages
379.06
High
425.00
Current: 315.950
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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- Investment Philosophy: Buffett's investment philosophy emphasizes the long-term holding of quality companies' stocks, particularly Coca-Cola and American Express, which has allowed Berkshire Hathaway to outperform the S&P 500 over the past 60 years, showcasing the success and stability of his investment strategy.
- Apple Investment Returns: Buffett's initial investment of $35 billion in Apple in 2016 has grown to $185 billion, reflecting his deep understanding of consumer behavior and high regard for CEO Tim Cook's management capabilities, which not only yielded substantial returns for Berkshire but also solidified its position in the tech sector.
- Market Performance: Apple's latest quarterly results exceeded analyst expectations, with projected revenue growth of 14% to 17%, significantly higher than the 9.5% market forecast, and record-high services revenue, indicating Apple's strong competitive edge and ongoing growth potential in the consumer market.
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- Dividend Payment Date: This dividend is payable on June 15, 2026, to shareholders of record as of June 1, 2026, ensuring timely returns for investors and enhancing their confidence in the company.
- Company Background: Founded in 1850 and headquartered in New York, American Express is a global payments and premium lifestyle brand that leverages technology to provide differentiated products and services, enhancing customer experiences.
- Brand Value: Built on trust, security, and service, American Express aims to deliver the world's best customer experience to a wide range of consumers, small and medium-sized businesses, and large corporations, strengthening its competitive position in the global market.
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- Dividend Declaration: The Board of Directors of American Express announced a quarterly dividend of $9,072.22 per share on its 3.550% Fixed Rate Reset Noncumulative Preferred Shares, Series D, reflecting the company's ongoing profitability and commitment to shareholder returns.
- Payment Schedule: This dividend is set to be paid on June 15, 2026, to shareholders of record as of June 1, 2026, ensuring timely returns for investors and bolstering their confidence in the company.
- Company Overview: Founded in 1850 and headquartered in New York, American Express is a global payments and premium lifestyle brand that leverages technology to deliver exceptional customer experiences, enhancing customer loyalty and competitive positioning in the market.
- Global Network: American Express builds relationships with millions of merchants worldwide, aiming to provide differentiated products and services for consumers and businesses, thereby driving business success and enhancing brand value.
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- New CEO Strategy: Since taking over in March, new CEO Enrique Lores has announced plans to reorganize the company into three operating units, including a dedicated Venmo division, aiming to enhance competitiveness against Big Tech entrants like Apple and Google.
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See More
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- Investment Philosophy: Buffett's investment philosophy emphasizes the long-term holding of quality companies' stocks, particularly Coca-Cola and American Express, which has allowed Berkshire Hathaway to outperform the S&P 500 over the past 60 years, showcasing the success and stability of his investment strategy.
- Apple Investment Returns: Buffett's initial investment of $35 billion in Apple in 2016 has grown to $185 billion, reflecting his deep understanding of consumer behavior and high regard for CEO Tim Cook's management capabilities, which not only yielded substantial returns for Berkshire but also solidified its position in the tech sector.
- Market Performance: Apple's latest quarterly results exceeded analyst expectations, with projected revenue growth of 14% to 17%, significantly higher than the 9.5% market forecast, and record-high services revenue, indicating Apple's strong competitive edge and ongoing growth potential in the consumer market.
- Management Transition: With Cook handing over the CEO role to Senior Vice President of Hardware Engineering John Ternus, Apple is at a pivotal transition point, where the new leadership may bring innovative product expertise, further driving the company's growth and market share.
See More
American Express Declares Quarterly Dividend
- Quarterly Dividend Announcement: The Board of Directors of American Express declared a quarterly dividend of $9,072.22 per share on its 3.550% Fixed Rate Reset Noncumulative Preferred Shares, Series D, reflecting the company's ongoing profitability and commitment to shareholder returns.
- Dividend Payment Date: This dividend is payable on June 15, 2026, to shareholders of record as of June 1, 2026, ensuring timely returns for investors and enhancing their confidence in the company.
- Company Background: Founded in 1850 and headquartered in New York, American Express is a global payments and premium lifestyle brand that leverages technology to provide differentiated products and services, enhancing customer experiences.
- Brand Value: Built on trust, security, and service, American Express aims to deliver the world's best customer experience to a wide range of consumers, small and medium-sized businesses, and large corporations, strengthening its competitive position in the global market.
See More
American Express Declares Quarterly Dividend
- Dividend Declaration: The Board of Directors of American Express announced a quarterly dividend of $9,072.22 per share on its 3.550% Fixed Rate Reset Noncumulative Preferred Shares, Series D, reflecting the company's ongoing profitability and commitment to shareholder returns.
- Payment Schedule: This dividend is set to be paid on June 15, 2026, to shareholders of record as of June 1, 2026, ensuring timely returns for investors and bolstering their confidence in the company.
- Company Overview: Founded in 1850 and headquartered in New York, American Express is a global payments and premium lifestyle brand that leverages technology to deliver exceptional customer experiences, enhancing customer loyalty and competitive positioning in the market.
- Global Network: American Express builds relationships with millions of merchants worldwide, aiming to provide differentiated products and services for consumers and businesses, thereby driving business success and enhancing brand value.
See More
Three Major U.S. Companies Announce Dividend Increases
- American Express Dividend Increase: American Express announced a 16% increase in its quarterly dividend to $0.95 per share, yielding 1.2%, while achieving an 11% revenue growth amidst economic pressures, showcasing its stability and growth potential.
- TJX Companies Strong Performance: TJX raised its dividend by 13%, marking the 29th increase in 30 years, with a solid same-store sales growth rate of 5%, demonstrating resilience and sustained growth in a challenging retail environment.
- Costco's Steady Growth: Costco increased its quarterly dividend from $1.30 to $1.47, and while its yield is 0.6%, its history of special dividends enhances investor confidence, indicating strong long-term returns potential.
- Importance of Dividend Growth: These three companies convey their financial health and long-term investment value through significant dividend increases, particularly as stable dividend income becomes a crucial consideration for investors facing inflationary pressures.
See More
Berkshire Hathaway's Cautious Cash Accumulation Under Abel
- Cash Reserve Growth: As of Q1 2026, Berkshire Hathaway's cash and cash equivalents reached $51.47 billion, a 14% increase from the previous year, indicating the company's cautious approach in a high market, preparing for future investment opportunities.
- Market Valuation Indicator: The Buffett Indicator currently stands at 225%, exceeding the 200% threshold considered overvalued, reflecting the company's reluctance to chase high-priced assets in the current market environment, thus maintaining liquidity and safety of funds.
- Reduction in Blue-Chip Holdings: Berkshire Hathaway has been a net seller of stocks for 12 consecutive quarters, reducing major stakes in companies like Bank of America and Apple, which further enhances its cash position and demonstrates the company's cautious stance towards the market.
- Investment Strategy Adjustment: Buffett stated that while he is willing to invest $100 billion at the right price, current market valuations are unreasonable, leading the company to continue holding cash reserves to seize more attractive investment opportunities in the future.
See More
PayPal Surpasses Wall Street Expectations in Q1 Results
- Earnings Beat: PayPal's Q1 revenue rose 7% to $8.35 billion, exceeding analysts' expectations of $8.05 billion, reflecting resilient consumer spending despite inflation and economic uncertainty.
- Volume Growth: On a currency-neutral basis, total payment volumes increased 8% year-over-year to approximately $464 billion, indicating sustained appeal in the digital payments sector, particularly in the higher-margin online branded checkout segment.
- New CEO Strategy: Since taking over in March, new CEO Enrique Lores has announced plans to reorganize the company into three operating units, including a dedicated Venmo division, aiming to enhance competitiveness against Big Tech entrants like Apple and Google.
- Cost-Saving Initiatives: PayPal aims to save about $1.5 billion over the next two to three years through business streamlining and the implementation of artificial intelligence, which is expected to improve operational efficiency and bolster long-term profitability.
See More
