Visa and Mastercard rival American Express on Thursday teamed up with cryptocurrency exchange Coinbase to announce the upcoming launch of the Coinbase One Card.
Earning a spot on the Investor's Business Daily Leaderboard, AmEx stock aims to finance a breakout from a 303.62 buy point in a cup-with-handle pattern. Investors should note how shares of American Express recently flashed a positive, telltale clue that bodes well for the credit card giant.
American Express And The Coinbase One Card
Coinbase said it will launch the Coinbase One Card – its first credit card – on the American Express Network.
The Coinbase One Card will offer up to 4% Bitcoin back on every purchase, offered by Coinbase and Careless, and issued by First Electronic Bank. AmEx said the card will be exclusively available to Coinbase One members in the U.S., with more details coming this fall.
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After 131% Gain, AmEx Stock Resets For New Run
Slipping from five quarters of double-digit sales growth, AmEx has posted single-digit gains in each of the last three quarters. In the first quarter, revenue rose 6% to $18.9 billion.
Earnings growth has also slowed. After delivering double-digit growth in six of the prior seven quarters, AmEx posted 9% earnings growth to $3.64 per share. For the full year, analysts forecast a 14% gain, followed by another 14% gain in 2026.
After bottoming out in October of 2023, AmEx stock rose over 131% in a relatively smooth fashion until peaking in January.
At the tail end of that run, American Express reset its base count by undercutting the low in its prior pattern. That's making its current cup with handle a first-stage base, which bodes well for AmEx stock. Early-stage patterns have a better chance of success than late-stage setups.
As the stock takes aim at the 303.62 buy point, it has bounced back to again test support at its 21-day exponential moving average.
Coinbase stock continues to show somewhat similar action. As American Express tests resistance at its 21-day line, Coinbase popped back above it in rising volume Monday.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
