[Bloomberg Article] How Bad Will It Get for American Express?
It’s no secret that Costco cutting ties with American Express earlier this year adversely impacted the company’s image and stock price. Bloomberg Business just released a fantastic article delving into the Costco/American Express breakup and gives some insight into the Amex business model. Spoiler alert: 10% of Amex cards were Costco branded!
The article is definitely worth a read, and it explains why Amex has offered so many lucrative sign-up bonuses recently. Amex wants to attract customers, and they aren’t afraid to offer great sign-up bonuses, such as the recent Premier Rewards Gold, Delta Personal Gold, or the expired Platinum 100k offer. I’d expect more lucrative offers in the future as American Express struggles to maintain its cardmember base.