JPMorgan Chase & Co (NYSE:JPM) is in late-stage negotiations to take over Apple Inc’s (NASDAQ:AAPL) credit card partnership from Goldman Sachs Group Inc (NYSE:GS), according to a Wall Street Journal report.
What To Know: The discussions, which began in early 2024, have reportedly accelerated, with JPMorgan emerging as Apple’s preferred successor.
While no deal is finalized, a potential agreement would grant America’s largest bank access to Apple’s vast and loyal customer base, creating significant opportunities to cross-sell other financial products and services.
For Apple, leveraging JPMorgan’s extensive consumer banking infrastructure could enhance its ability to offer financing and payment solutions for its popular devices.
What Else: The Apple Card is a credit card created by Apple, designed for seamless use with Apple Pay and the Apple Wallet on iPhones and other Apple devices. Launched in 2019, it is known for features like daily cash back, no annual or late fees and user-friendly financial tracking tools integrated directly into the Wallet app.
The program was launched in a high-profile partnership with Goldman Sachs, which served as the issuing bank. This marked a major foray into consumer finance for Goldman Sachs.
However, the venture has reportedly been challenging for the investment bank, leading to significant financial losses and prompting its desire to exit the consumer lending space. This has paved the way for a new financial partner, potentially JPMorgan, to take over the program.
Benzinga Edge Rankings: According to Benzinga Edge stock rankings, which evaluate companies on four key metrics, JPMorgan demonstrates exceptional strength in Momentum and Growth, with high scores of 83.14 and 84.34, respectively.
This data suggests the stock has strong positive price trends and robust growth fundamentals. The company receives a moderate Quality score of 55.42.
Price Action: According to data from Benzinga Pro, JPM shares are trading marginally lower at $297.97 Tuesday morning. The stock has a 52-week high of $301.29 and a 52-week low of $190.90.
Read Also: PayPal’s Profit Surge Dwarfed By Q2 Transaction Slump, Stock Falls
How To Buy JPM Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in JPMorgan Chase’s case, it is in the Financials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
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