Connect with us

Updated: 79 Analysts See Gold Going To $3,000 Or More (+23K Views)

Many analysts are projecting that gold will be going at least as high as $3,000/ozt over the next few years. One analyst even claims that gold will spike…

Published

on

Automatically receive the internet’s most informative articles bi-weekly via our free bi-weekly Market Intelligence Report newsletter (sample here). Register in the top right hand corner of this page.

More and more analysts are projecting that gold will be going at least as high as $3,000/ozt over the next few years. One even claims that gold will spike up to $87,500/ozt.! Below is a revised list of their names and stated rationale for each of their forecasts.

By Lorimer Wilson, editor of munKNEE.com – Your Key To Making Money!

$50,000+ Gold

1. Jim Sinclair: $50,000 in 2025 and to $87,500 by 2032

  • @$In a recent YouTube video Sinclair said that, with so many U.S. Dollars being printed to uphold the economy as a result of COVID-19, that Gold will rise to $50,000/ozt. (i.e. go “straight up” in Sinclair’s words) at the end of the 45-year gold cycle which is coming up in 2025 and rise up to $87,500/ozt. by the end of 2032. Source

$25,000 – $35,000 Gold

1. Stephen Leeb: +$35,000 by 2032

  • “I wouldn’t be surprised if everything related to commodities performs even better this time around – albeit with sharper volatility – than in the earlier decade…[and that goes for] my nominal 10-year target of $35,000 [as well].”
  • Source

2. Erik Lytikainen: $25,000 by 2030

  • @$“We will not be surprised to see $25,000 per troy ounce of gold by the year 2030.  It will likely be a volatile ride higher, with large drawdowns along the way.” Source

3. Martin Armstrong: $25,000

  • “Gold should theoretically sell for $25,000 a troy ounce, given the monetary prolificacy since 1980”…in reference to the ever soaring $3.3 Trillion U.S. budget this year, alone.” (September, 2021) Source 
Editor’s Note: Enjoying the article so far? If so, please DONATE a little something so I can continue to bring you such informative articles.

$20,000 Gold

1. Goldrunner: $20,000 between mid-2028 and end of 2029

  • @$“As a result of the recent massive paper money printing, our chart work suggests that gold could possibly spike up to as high as $20,000 per troy ounce – or even a bit higher – some time between mid-2028 and the end of 2029.” Source

2. Pierre Lassonde: $20,000 sometime between 2022 and 2025

  • “Gold prices should skyrocket to much higher levels, even $20,000/ozt. in two to five years’ time, as gold reaches a price level close to the level of the Dow Jones Industrial Index.” Source

3. Egon Von Greyerz: $20,000

  • “I believe a gold price of $20,000/ozt. is very probable, even without high inflation.” (May, 2020) Source

4. Leigh Goehring: $10,000-$15,000 by 2027-28

  • “Our target is between $10,000-$15,000 per troy ounce.,,[by] 2027-28.” Source

5.  Briton Hill: $5,000-$20,000 sometime between 2026 and 2031

  • “You can’t produce trillions of dollars with 0% interest rates and not introduce inflation. Long-term, we could be entering a cycle similar to the 1970s, where the precious metal sector rose by thousands of percentage points, and if we see something like that happen again in the next 5-10 years, we could easily see $5,000, $10,000, even $20,000 gold,” he said. “Gold could easily hit $20,000 per troy ounce in the next decade.” Source

6. Peter Schiff: $20,000 IF

  • The value of gold could rise tenfold and hit $20,000 per troy ounce in the event of a collapse of confidence in the US dollar and runaway inflation. (March, 2022) Source

7. Frank Barbera: $20,000 to $50,000 sometime between 2032 and 2037

  •  Barbera sees precious metals making a major low this spring and starting a new secular bull market that could last 10 to 15 years. He sees potential for gold to go as high as $20,000/oz or even $50,000 oz in that period. Source

$10,000 Gold

1. James Rickards: $10,000

  • “$10,000 per troy ounce is not pie in the sky. It’s not a number I pulled out of a hat to get headlines. It’s the actual mathematical implied non-deflationary price of gold.” (March, 2017) Source

2. Daniel Oliver: $10,000

  • “The money to push gold over $10,000 per troy ounce has already been printed and now they are going to print more…No doubt strong fiscal and monetary intervention may extend its life for a time, but then the ultimate price objective for gold will then be markedly higher.” (January, 2020) Source

3. Max Keiser: $10,000

  • To deal with the disaster of “trash fiat money” choking the global economy, a new gold standard will need to be introduced “and to make it work, we will see gold’s price top $10,000 per troy ounce.” (April, 2020) Source

4. Adam O’Dell: $10,000

  • “The price is guaranteed to hit near $10,000/ozt..” (April, 2020) Source

5. AG Thorson: $7,500 – $10,000 by end of 2029

  •  “By the end of this decade, we expect gold to reach $7,500 – $10,000 per troy ounce.” Source

6. Don Durrett: $3,000 to $10,000

  • “My price target for gold is somewhere between $3,000 and $10,000 per troy ounce.” (November, 2019) Source

7. Investors Alley: $3,000 -$10,000/ozt. by 2027

  • Given the current environment of rising inflation, negative real yields, a weaker dollar, and ongoing monetary dilution, gold should rise to $3,000 -$10,000/ozt. in 5 years time. Source

8. David Smith: $10,000

  • “Gold could reach US$10,000 per troy ounce by the end of the bull market.” (June, 2020) Source

9. Bob Kirtley: $10,000

  • “My target has been $10,000/ozt. since June 2006, so at that point, an exit strategy will be executed, hopefully with some handsome profits.” Source:

10. Scott Minerd: $5,000 to $10,000

  • “As chaotic price swings of the crypto world push investors back into gold and silver, the precious metals will start to build momentum, with the ultimate gold price target set at $5,000-$10,000 per troy ounce.” (May, 2021) Source

11. Arthur Hayes: +$10,000

  • He argues that central banks will choose to load up on gold instead of dollars causing gold to rise beyond $10,000/ozt.. (March, 2022) Source

12. Chris Waltzek: $10,000

  • Waltzek maintains that $10,000 gold may merely be the opening salvo of an explosive new bull market for PMs. (February, 2022) Source

$7,000 -$9,999 Gold

1. Florian Grummes$8,000 to $9,000 sometime between 2025 and 2030

  • “We could end up having gold at $8,000 to $9,000 per troy ounce in five to 10 years.” Source

2. Ronald-Peter Stoeferle and Mark Valek: $4,800 to $8,900 by 2030

  • “The proprietary valuation model shows a gold price of $4,800/ozt. at the end of this decade, even with conservative calibration. Should money supply growth develop in a similar inflationary manner to that of the 1970s, a gold price of $8,900/ozt. is conceivable by 2030.” Source

3. Graham Summers: $8,000

  • “Gold first rallied about 630% from 2003-2011. It then corrected about 43% before bottoming in 2015 at $1,060/ozt.. If it follows a similar second leg up this time around, it’s going to ~$8,000 per troy ounce before it peaks.” (September, 2020) Source

4. Hubert Moolman: $7,758

  • “In my opinion, it is virtually guaranteed that gold will again catch up with the Dow’s performance since 1913, and significantly surpass it just like in the 70s. This means we will likely see gold reach $7,758/ozt. (in the near future) and eventually go on to reach multiples of that high.” (August, 2020) Source

5. Gov Capital: $5,837 by 2023; $7,220 by 2024; $8,531 by 2025

  • “5 year gold forecast: $8530.74/ozt.” Source

6. Jason Hamlin: $4,000 to $8,000 by 2025

  • “We fully expect to see the gold price close out the year 2025 somewhere between $4,000 and $8,000 per troy ounce.” Source

7. Jeff Clark: $3,000 to $10,000 by 2025

  • “Potential 5-year high: $3,000 to $10,000 per troy ounce.” Source

8. Charlie Morris: $7,166

  • “A bullish target of $7,166/ozt. is both logical and plausible.” (December, 2019) Source

9. Mike McGlone: $7,000 by 2025

“From 2001-2011, gold advanced about 7.5 times, which if repeated would bring it to around $7,000/ozt. in 2025.” Source

10. Equity Management Academy: $5,500 in 2024

“Gold will then hit the delusion phase and in a new paradigm gold will hit $5,500 in 2024. After that high, gold will enter another bull trap and fear will drive gold down below $4,000. Gold will then return to its mean at about $1,500 to $2,000.” Source

11. Chris Vermeulen: $7,400 by 2027  Source

12. Robin Griffiths: $8,000

  • Griffiths says $8,000 gold is not unreasonable because China and India are becoming more dominant and to them, gold is real money. (March, 2011) Source

$4,000 – $6,999 Gold

1. Rob McEwen: $5,000

  • The founder of Goldcorp Inc., McEwen predicts that gold will soar to $5,000 a troy ounce, bolstered by a weaker dollar and waning demand for trendy assets like pot stocks. (January, 2019) Source

2. Victor Dergunov: $5,000 between 2022 and 2024

  • “Gold at $5,000/ozt. in 3-5 years seems plausible, and it is likely to continue to go higher after that.” Source

3. Dan Popescu: $5,000 by 2025 years

  •  “Gold price could break above $5,000/ozt. in the next 5 years.” Source

4. David Morgan: $5,000 before the end of 2029

  •  “Gold could hit $5,000 a troy ounce this decade, especially as the greenback loses purchasing power.” Source

5. Moe Zulfiqar: $5,000 by 2030

  • ” It wouldn’t be shocking to see gold at $5,000 per troy ounce, or more, by 2030. ” Source

6. Brian Whitfield: $5,000 by 2030

  • “I feel I am safe, and being conservative, in saying that gold should be trading between $3000 – $5000 per troy ounce in ten years. Should the U.S. dollar fail and/or the U.S. dollar loses the coveted global reserve currency status and/or even the loss of the petrodollar, gold could hit these level far sooner.” Source

7. Chris Wood: $5,386

  • “The gold price of US$850/ozt. at the peak of the last secular bull market in gold in January 1980 was then equivalent to 9.9% of US disposable income per capita. The gold price is now just 3.6% of US disposable income per capita. Therefore, to reach 9.9% of US disposable income per capita means gold should rise to US$5,386/ozt.. (September, 2020) Source

8. Ole Hansen: $4,000

  • “$4,000/ozt. probably is a little bit far-fetched as the world looks right now, but if you look years into the future, then that is possible because the repercussions of what we’re going through right now with the pandemic and the aftermath is going to be something that’s going to be felt for at least this generation and potentially beyond.” (April, 2020)  Source

9. Geraldo Del Real: $3,000 to $5,000

  • “I actually think $3,000 to $5,000 per troy ounce is very reasonable.” (July, 2019) Source

10. Thomas Kaplan: $3,000 to $5,000 by 2030

  • “Gold prices could rally as high as $3,000 to $5,000 per troy ounce within a decade.” Source

11. David Rosenberg: $3,000 to $5,000

  • “A $3,000 to $5,000 per troy ounce target.is fundamentally justified based on the facts we have today.” (August, 2019) Source

12. Gary Christenson: $5,000 by 2022

  • “a gold price of $5,000/ozt. in 2022 is plausible.” Source

13. Shaun Djie: $3,000 to $4,000 by the end of 2029

  • “In the next 10 years, gold will continue to be volatile. Gold could trade anywhere between the levels of $3,000 or $4,000 per troy ounce in the next ten years given how much cash will be potentially put into the economy.” Source

14. Frank Holmes$4,000 by 2023

  • “The yellow metal is set to rally in the same fashion as in the aftermath of the last recession and, if cycles are exactly the same, gold could go to $4,000/ozt.”. Source

15. Diego Parrilla: $3,000 to $5,000 sometime between 2023 and 2025

  • Unprecedented monetary stimulus is fueling asset bubbles and corporate debt addiction — rendering interest-rate hikes impossible without an economic crash. In the ensuing market mania gold could rise to $3,000 to $5,000 per troy ounce in the next three to five years. Source

16. Eric Fry: $3,000 to $4,000

  • ‘When this ballgame ends, gold with be trading for at least $3,000 a troy ounce, and an extra-inning affair would not surprise me — lifting the gold price past $4,000/ozt..” (July 2020) Source

17. Michael Cuggino: $4,000

  • Cuggino says it would “not be an unreasonable move” for gold to breach $4,000/ozt.. (August, 2020) Source

18. Kirk Spano: $3,000 to $5,000 by 2025

  • “$3,000/ozt. mid-decade [with] upside potential to $5,000 per troy ounce.” Source

19. Jordan Roy-Byrne: $4,000 by end of 2024

  • “Gold will hit my $4,000 target by the end of 2024.” Source

20. Stan Bharti: $4,000-$5,000/ozt. in this cycle

  • Believes gold is going to between $4,000-$5,000/ozt. in this cycle. (March 2022) Source

21. Ralph Wakerly: $5,000/ozt., sometime between 2025 and 2028

  • Believes gold could easily reach $5,000/ozt., maybe more, within 3-6 years. Source

22. GoldPriceForecasts.com: $3,000 within the year of 2027, $3,500 in 2029 and $4,000 in 2031. Source

23. Rick Rule: $4,000 – $6,000 by 2027

  • Rule says that in past bull cycles, gold has climbed at least seven-fold, and that it is very likely that gold will double or triple by five years’ time. Source

$3,000 – $3,500 Gold

1. Charles Gibson$3,281

  • “Since 1967, the price of gold has shown an extremely strong (0.909) correlation with the total U.S. monetary base. The more dollars that either are, or could be, in circulation, the higher the expected gold price. With the total US monetary base now closing in on US$5.5tn the gold price could very reasonably be expected to rise to as high as US$3,281/ozt.” (June 2020) Source

2. WingCapital Investments: $3,000

  • “Using the post-2008 bull market as a guideline during which gold more than doubled within the ensuing 3 years, $3,000/ozt. would be a reasonable long-term target in our opinion.” (March 2020) Source

3. Brian Lundin: $3,000 by 2024

  •  “I think we’ll set a new record in real terms, exceeding $3,000/ozt., at some point over the next four years or so.” Source

4. Byron King: $3,000

  • “I think Bank of America is on track. I don’t think there’s any question gold will see $3,000/ozt.. As with all things in life, it’s just a question of how long it will take.” (April, 2020) Source 

5/6. Ben Morris and Drew McConnell: $3,000

  • “$3,000 per troy ounce isn’t a long shot.” (May, 2020) Source

7. Stewart Thomson: $3,000

  •  “Queen Gold is assured of launching above the key $2,000/ozt. price zone, ready to begin a rocket blast towards my medium-term $3,000/ozt. target!” (June, 2020) Source

8. John Ing: Higher than $3,000

  • “We expect gold to trade higher than $3,000 a troy ounce due to a lower greenback and solvency concerns.” (August 2020) Source

9. Joe Foster: $3,200 to $3,400

  • “We…believe this to be a deflationary cycle and both recent deflationary gold bull markets suggest that a price over $3,000 per troy ounce is reasonable. In fact, if one believes, as we do, that the current central bank stimulus to fight the impacts of the COVID-19 virus, along with elevated levels of systemic risks, are similar to those during the global financial crisis, then $3,400/ozt. may be the target for this bull market.” (August 2020) Source

10. SomaBull: $3,000

  • “The money supply is quickly heading to levels that would support a $3,000/ozt. gold price well in excess of fair value by the time this bull market is exhausted.” (October, 2020) Source

11. Adam Trexler: $3,000

  • “With inflation coming, we’ll see gold over $2,500/ozt. in real dollar terms but we’ll see a devaluing of the dollar…[and] if you see 10% inflation, the dollar number value of gold could be much higher. I don’t think $3,000/ozt. gold is impossible and, if we see a hyperinflation scenario, it could be significantly higher.” (June, 2021) Source

12. Adam Hamilton: $3,450

  • “Gold prices ought to at least double before this raging inflation runs its course, which would carry it up around $3,450 sometime in the coming years!” (June, 2022) Source

13. Lawrence Lepard: $3,000 by mid-2024 Source

14. Tony Dobra: $3,000

  • Dobra believes the situation in Ukraine should see gold topping $2,100/ozt. later in 2022 and then that, anything is possible with $3,000/ozt. more likely than not. (April, 2022) Source

15. Trevor Gerszt: $3,000 by 2025

  • Gerszt believes the prospect for $3,000 gold by mid-decade is not outlandish. Source

16. Clem Chambers: $3,000

17. Sean Williams: $3,000 in 2022

  •  “It would not be in the least bit surprising if spot gold approached $3,000 per ounce by sometime in 2022.” Source

What do you think of the above price forecasts? Have your say in the “Comments” section below. Also, if I have missed other analyst forecasts (they must be within the last year) please mentioned them below and I will include them in a future article.

Editor’s Note:

Please donate what you can towards the costs involved in providing this article and those to come. Contribute by Paypal or credit card.

Thank you Dom for your recent $50 donation!

 munKNEE.com has joined eResearch.com to provide you with individual company research articles and specific stock recommendations in addition to munKNEE’s more general informative articles on the economy, the markets, and gold, silver and cannabis investing.
Check out eResearch. If you like what you see then…

Read More

Continue Reading

Uncategorized

Stay Ahead of GDP: 3 Charts to Become a Smarter Trader

When concerns of a recession are front and center, investors tend to pay more attention to the Gross Domestic Product (GDP) report. The Q4 2022 GDP report…

Published

on

When concerns of a recession are front and center, investors tend to pay more attention to the Gross Domestic Product (GDP) report. The Q4 2022 GDP report showed the U.S. economy grew by 2.9% in the quarter, and Wall Street wasn't disappointed. The day the report was released, the market closed higher, with the Dow Jones Industrial Average ($DJIA) up 0.61%, the S&P 500 index ($SPX) up 1.1%, and the Nasdaq Composite ($COMPQ) up 1.76%. Consumer Discretionary, Technology, and Energy were the top-performing S&P sectors.

Add to the GDP report strong earnings from Tesla, Inc. (TSLA) and a mega announcement from Chevron Corp. (CVX)—raising dividends and a $75 billion buyback round—and you get a strong day in the stock markets.

Why is the GDP Report Important?

If a country's GDP is growing faster than expected, it could be a positive indication of economic strength. It means that consumer spending, business investment, and exports, among other factors, are going strong. But the GDP is just one indicator, and one indicator doesn't necessarily tell the whole story. It's a good idea to look at other indicators, such as the unemployment rate, inflation, and consumer sentiment, before making a conclusion.

Inflation appears to be cooling, but the labor market continues to be strong. The Fed has stated in many of its previous meetings that it'll be closely watching the labor market. So that'll be a sticky point as we get close to the next Fed meeting. Consumer spending is also strong, according to the GDP report. But that could have been because of increased auto sales and spending on services such as health care, personal care, and utilities. Retail sales released earlier in January indicated that holiday sales were lower.

There's a chance we could see retail sales slowing in Q1 2023 as some households run out of savings that were accumulated during the pandemic. This is something to keep an eye on going forward, as a slowdown in retail sales could mean increases in inventories. And this is something that could decrease economic activity.

Overall, the recent GDP report indicates the U.S. economy is strong, although some economists feel we'll probably see some downside in 2023, though not a recession. But the one drawback of the GDP report is that it's lagging. It comes out after the fact. Wouldn't it be great if you had known this ahead of time so you could position your trades to take advantage of the rally? While there's no way to know with 100% accuracy, there are ways to identify probable events.

3 Ways To Stay Ahead of the Curve

Instead of waiting for three months to get next quarter's GDP report, you can gauge the potential strength or weakness of the overall U.S. economy. Steven Sears, in his book The Indomitable Investor, suggested looking at these charts:

  • Copper prices
  • High-yield corporate bonds
  • Small-cap stocks

Copper: An Economic Indicator

You may not hear much about copper, but it's used in the manufacture of several goods and in construction. Given that manufacturing and construction make up a big chunk of economic activity, the red metal is more important than you may have thought. If you look at the chart of copper futures ($COPPER) you'll see that, in October 2022, the price of copper was trading sideways, but, in November, its price rose and trended quite a bit higher. This would have been an indication of a strengthening economy.

CHART 1: COPPER CONTINUOUS FUTURES CONTRACTS. Copper prices have been rising since November 2022. Chart source: StockCharts.com. For illustrative purposes only.

High-Yield Bonds: Risk On Indicator

The higher the risk, the higher the yield. That's the premise behind high-yield bonds. In short, companies that are leveraged, smaller, or just starting to grow may not have the solid balance sheets that more established companies are likely to have. If the economy slows down, investors are likely to sell the high-yield bonds and pick up the safer U.S. Treasury bonds.

Why the flight to safety? It's because when the economy is sluggish, the companies that issue the high-yield bonds tend to find it difficult to service their debts. When the economy is expanding, the opposite happens—they tend to perform better.

The chart below of the Dow Jones Corporate Bond Index ($DJCB) shows that, since the end of October 2022, the index trended higher. Similar to copper prices, high-yield corporate bond activity was also indicating economic expansion. You'll see similar action in charts of high-yield bond exchange-traded funds (ETFs) such as iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and SPDR Barclays High Yield Bond ETF (JNK).

CHART 2: HIGH-YIELD BONDS TRENDING HIGHER. The Dow Jones Corporate Bond Index ($DJCB) has been trending higher since end of October 2022.Chart source: StockCharts.com. For illustrative purposes only.

Small-Cap Stocks: They're Sensitive

Pull up a chart of the iShares Russell 2000 ETF (IWM) and you'll see similar price action (see chart 3). Since mid-October, small-cap stocks (the Russell 2000 index is made up of 2000 small companies) have been moving higher.

CHART 3: SMALL-CAP STOCKS TRENDING HIGHER. When the economy is expanding, small-cap stocks trend higher.Chart source: StockCharts.com. For illustrative purposes only.

Three's Company

If all three of these indicators are showing strength, you can expect the GDP number to be strong. There are times when the GDP number may not impact the markets, but, when inflation is a problem and the Fed is trying to curb it by raising interest rates, the GDP number tends to impact the markets.

This scenario is likely to play out in 2023, so it would be worth your while to set up a GDP Tracker ChartList. Want a live link to the charts used in this article? They're all right here.


Jayanthi Gopalakrishnan

Director, Site Content

StockCharts.com

 

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

Read More

Continue Reading

Uncategorized

Hotels: Occupancy Rate Down 6.2% Compared to Same Week in 2019

From CoStar: STR: MLK Day Leads to Slightly Lower US Weekly Hotel PerformanceWith the Martin Luther King Jr. holiday, U.S. hotel performance came in slightly lower than the previous week, according to STR‘s latest data through Jan. 21.Jan. 15-21, 2023 …

Published

on

With the Martin Luther King Jr. holiday, U.S. hotel performance came in slightly lower than the previous week, according to STR‘s latest data through Jan. 21.

Jan. 15-21, 2023 (percentage change from comparable week in 2019*):

Occupancy: 54.2% (-6.2%)
• Average daily rate (ADR): $140.16 (+11.3%)
• evenue per available room (RevPAR): $75.97 (+4.4%)

*Due to the pandemic impact, STR is measuring recovery against comparable time periods from 2019. Year-over-year comparisons will once again become standard after Q1.
emphasis added
The following graph shows the seasonal pattern for the hotel occupancy rate using the four-week average.

Click on graph for larger image.

The red line is for 2023, black is 2020, blue is the median, and dashed light blue is for 2022.  Dashed purple is 2019 (STR is comparing to a strong year for hotels).

The 4-week average of the occupancy rate is below the median rate for the previous 20 years (Blue), but this is the slow season - and some of the early year weakness might be related to the timing of the report.

Note: Y-axis doesn't start at zero to better show the seasonal change.

The 4-week average of the occupancy rate will increase seasonally over the next few months.

Read More

Continue Reading

Uncategorized

American Express Numbers Show What Still Gets People to Spend Money

American Express stock jumped nearly 12% since earnings dropped.

Published

on

American Express stock jumped nearly 12% since earnings dropped.

Even though American Express  (AXP) - Get Free Report earnings announced Friday afternoon fell somewhat short of expectations for the quarter, shares still soared to highs unseen for many months due to a number of strong metrics -- quarterly revenue growth of 17%, plans to raise its dividend by 15% from 52 to 60 cents and an annual revenue that surpassed $50 billion for the first time ever.

At $52.9 billion, the latter is driven primarily by an increase in quarterly member spending. Last year, that number was at $42.4 billion. 

According to American Express Chairman and CEO Stephen J. Squeri, the increase can be attributed to higher numbers of millennials gaining in earning power and using their AmEx above other cards to tap into rewards as many approach milestones like marriage, career advancement, and homeownership.

"Millennial and Gen Z customers continue to be the largest drivers of our growth, representing over 60% of proprietary consumer card acquisitions in the quarter and for the full year," Squeri said in an earnings call discussing the results.

People Are Using Their AmEx Cards a Lot

The $52.9 billion number is up 25% from what was seen last quarter and reflects a number of different factors also having to do with post-pandemic spending.

"We ended 2022 with record revenues, which grew 25% from a year earlier, and earnings per share of $9.85, both well above the guidance that we provided when we introduced our long-term growth plan at the start of last year, despite a mixed economic environment," Squeri said.

AmEx further reported that 12.5 million new members signed up for cards in 2022 while existing members used their cards frequently. Fourth-quarter sales at AmEx's U.S. consumer services and commercial segments rose by a respective 23% and 15%.

But higher expenses also led to falling below analyst expectations. The fourth-quarter income of $1.57 billion, or $2.07 a share, is down from $1.72 billion ($2.18 a share) in the fourth quarter of 2021. FactSet analysts had predicted $2.23 a share.

"I'm not sure what that's really a function of right now -- whether it's a function of the economy or of confusion on where to advertise right now," Squeri told Yahoo Finance in reference to lower spending on the part of small business and digital advertisers. "We're going to watch that, but the consumer is really strong, travel bookings are up over 50% vs pre-pandemic."

Shutterstock

It's a Good Time to Be Tracking Credit Card Companies

Immediately after the earnings dropped, AmEx stock started soaring and was up nearly 12% at $175.24 on Friday afternoon. This is a high unseen in months -- the last peak occurred when, on September 12, shares were at $162.45. 

Whether due to or despite analyst threats of a looming recession, people have been using their credit cards very actively throughout the end of 2022.

When it posted its earnings earlier this week, Mastercard  (MA) - Get Free Report surpassed Wall Street expectations of $5.8 billion and $2.65 per share in fourth-quarter earnings. Visa  (V) - Get Free Report also saw revenue rise 11.8% to $7.94 billion in the same quarter. The numbers also reflect higher numbers of people traveling and using their credit cards in different countries.

"Visa's performance in the first quarter of 2023 reflects stable domestic volumes and transactions and a continued recovery of cross-border travel," outgoing CEO Al Kelly said of the results during a call with financial analysts.

Read More

Continue Reading

Trending