Why American Express Stock Plummeted on Friday

Core Viewpoint - Concerns have arisen regarding American Express's vulnerability to disruption following significant layoffs at a peer company, Block, which led to a nearly 8% decline in American Express's stock value [1][4]. Group 1: Company Performance - American Express's stock lost almost 8% in value, closing at $307.95, down $27.37 [4]. - The market capitalization of American Express is reported at $230 billion [5]. - The stock's trading range for the day was between $307.67 and $321.01, with a 52-week range of $220.43 to $387.49 [5]. Group 2: Industry Context - Block, a digital payments company, announced layoffs of over 4,000 employees, approximately 40% of its workforce, coinciding with its fourth-quarter and full-year 2025 earnings report [2]. - Block's CEO, Jack Dorsey, emphasized that the layoffs are aimed at achieving technology-powered efficiency, stating that a smaller team can leverage intelligence tools to enhance productivity [4]. - The situation at Block raises concerns for traditional financial companies like American Express, although American Express has a history of embracing technology and implementing solutions like artificial intelligence [6].