Markets

American Express is suffering from the Corona crisis and Microsoft is benefiting from it

In the coronavirus pandemic, the buying mood of the citizens is falling. Restrictions to contain the crisis also put pressure on sentiment. The latest figures from US credit card company American Express are proof. In contrast, Microsoft is one of the Corona profiteers, but cannot convince with its latest outlook.

First things first about American Express and Microsoft:

  • American Express with a massive drop in profits
  • Microsoft strong in the cloud and in PC games

American Express (Amex) has the corona crisis firmly under control. The US credit card company is feeling the reluctance to buy in the pandemic: The company reports a slump in sales, which is topped by the decline in earnings.

According to Amex, the profit in the past third quarter was $ 1.07 billion. Compared to the same period last year, this represents a decrease of around 40 percent. Income plummeted by around 20 percent to $ 8.8 billion.

The group is suffering from the fact that customers have been paying less with credit cards since the outbreak of the coronavirus pandemic. The fear of losing their job is a burden on consumers especially in the USA, American Express’ home market. There the number of unemployed had risen sharply. In addition, more and more customers can no longer repay their loans.

Products on American Express Co.

In contrast, Microsoft was able to score points with its cloud services and video games during the pandemic and delivered better than expected quarterly figures after the market closed yesterday. In the past quarter Microsoft was able to increase its profit and sales compared to the previous year and achieved 1.82 dollars per share as profit. Analysts had expected $ 1.54 (FactSet). Sales of $ 37.2 billion were also above expectations of $ 35.76 billion.

In an initial reaction, shareholders showed reluctance because Microsoft’s forecasts were disappointing. The company expects sales between 39.5 and 40.4 billion dollars in the next quarter (2nd fiscal quarter), which would be a significant increase over the previous year, but analysts (FactSet) have sales of 40.5 billion dollars expected.

The cloud area, which is becoming increasingly important, was able to grow strongly. “The demand for our cloud offerings got off to a good start in the financial year. Our sales with commercial clouds amounted to 15.2 billion US dollars, an increase of 31 percent over the previous year, “said CFO Amy Hood. The console sales also went up strongly: Microsoft recorded an increase in Xbox sales in the last quarter by 65 percent, and the upcoming launch of the new Xbox should, according to the company, increase growth even further.

Products on Microsoft

When purchasing certificates and leverage products, investors should familiarize themselves with how they work and understand the opportunities and risks. Investors should be particularly aware of the increased risks associated with leverage products. In addition, it is essential to pay attention to the creditworthiness and thus to the risk of default of the issuer. You can obtain further important and useful information about our products by calling the toll-free number 0800 4000 910 or on our website www.hsbc-zertifikate.de.

Source: HSBC

Click here for the HSBC homepage

Are you interested in a daily delivery of our newsletter?

Subscribe for free

Important instructions

This document was produced by HSBC Trinkaus & Burkhardt AG (“HSBC”). It is for informational purposes only and may not be passed on to third parties without the express written consent of HSBC. The document is a marketing tool. The legal requirements for the impartiality of financial analyzes are not met. There is no prohibition on trading the financial products discussed before this presentation is published (“front running”). The document is also not a substitute for expert investment advice tailored to individual requirements. A subscription offer is also not yet associated with this. The document is only aimed at people who have their permanent residence / seat in Germany or Austria. It is not intended for recipients in other jurisdictions, and especially not for US citizens. Any information given on historical performance (including simulations) and forecasts of future performance of the financial products / financial indices presented are not a reliable indicator of future performance. If the discussed financial products are listed in a currency other than EUR, the return may rise or fall due to currency fluctuations. The tax treatment of an investment depends on the personal circumstances of the investor and can be subject to future changes. The information given in this document is based on sources which we believe to be reliable, but which we have not subjected to impartial testing. We do not guarantee and accept no liability for the correctness and completeness of the information contained herein.

Advertising notice

The basic prospectuses as well as the final terms and the basic information sheets are available here. By entering the respective WKN in the search field or via the “Products” tab, you can access the individual product view. There, under “Downloads”, the relevant final terms and conditions for the individual products, which contain the terms and conditions of the offer, including the relevant terms and conditions, as well as the relevant basic information sheets can be called up.

The approval of the base prospectus by the BaFin is not to be understood as its approval of the securities offered. We recommend that interested parties and potential investors read the Base Prospectus and the Final Terms before making an investment decision in order to obtain as much information as possible, in particular about the potential risks and opportunities of the security.

You are about to acquire a product that is not easy and can be difficult to understand.

License notice

“DAX®”, “TecDAX®”, “MDAX®”, “VDAX-NEW®”, “SDAX®”, “DivDAX®”, “ÖkoDAX®”, “Entry Standard Index”, “X-DAX®” and “GEX®” are the intellectual property (including registered trademarks) of Deutsche Börse AG (“DBAG”), Deutsche Börse Group or their licensors and are used under license. The securities are neither promoted, advertised, distributed or supported in any other way by DBAG, Deutsche Börse Group or their licensors, research partners or data suppliers, and DBAG, Deutsche Börse Group and their licensors, research partners or data suppliers accept no warranty whatsoever Liability (from negligent as well as from other conduct) in this regard generally from and in particular with regard to any errors, omissions or disturbances of the relevant index or the data contained therein.

EURO STOXX 50®, STOXX 50®, STOXX® 600 and its brands, STOXX® Europe 600 Oil & Gas, STOXX® Europe 600 Basic Resources, EURO STOXX 50® DVP are the intellectual property (including registered trademarks) of STOXX Ltd., Zug, Switzerland (“STOXX”), Deutsche Börse Group or its licensors and is used under license. The securities are neither promoted, advertised, distributed or supported in any other way by STOXX, Deutsche Börse Group or their licensors, research partners or data suppliers, and STOXX, Deutsche Börse Group and their licensors, research partners or data suppliers assume no warranty and exclude any guarantee Liability (from negligent as well as from other conduct) in this regard generally from and in particular with regard to any errors, omissions or disturbances of the relevant index or the data contained therein.

The S&P 500 Index is a product of S&P Dow Jones Indices LLC (“SPDJI”) and has been licensed for use by HSBC Trinkaus & Burkhardt AG (“Licensee”). Standard & Poor’s®, S & P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”), and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). These trademarks have been licensed for use by SPDJI and have been re-licensed by the licensee for certain purposes. Licensee’s products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P or their respective affiliates, and neither party makes any representations as to the advisability of investing in such product (s) and assumes no liability for any errors, omissions or interruptions in the S&P 500 Index.

Nasdaq® and Nasdaq-100 Index® are registered trademarks of Nasdaq, Inc. (together with its affiliated companies referred to as the “Companies”) and are licensed to HSBC Trinkaus & Burkhardt AG for use by them. The companies make no statement about the legality or the suitability of the securities. The companies do not issue, recommend, sell or advertise the securities. THE COMPANIES MAKE NO WARRANTY AND ASSUME NO LIABILITY IN CONNECTION WITH THE SECURITIES.

The “Dow Jones Industrial Average” is a product of S&P Dow Jones Indices LLC (“SPDJI”) and has been licensed for use by HSBC Trinkaus & Burkhardt AG (“Licensee”). Standard & Poor’s® and S & P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”), and DJIA®, The Dow®, Dow Jones® and Dow Jones Industrial Average are trademarks of Dow Jones Trademark Holdings LLC (“Dow Jones”). These trademarks have been licensed for use by SPDJI and have been re-licensed by the licensee for certain purposes. Licensee’s products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P or their respective affiliates, and neither party makes any representations as to the advisability of investing in such product (s) and assumes no liability for any errors, omissions or interruptions in the Dow Jones Industrial Average.

Publisher: HSBC Trinkaus & Burkhardt AG, Königsallee 21/23, 40212 Düsseldorf

Tags

Related Articles

Back to top button
Close
Close