American Express reports better-than-expected third-quarter profit. Artificial Intelligence major Genesys has confidentially filed for an initial public offering in the US. Jeff Bezos-backed Perplexity AI begins fundraising talks, aiming to more than double its valuation to $8 billion. UBS is offloading 50 percent stake in credit card provider Swisscard to American Express. All this and much more in the October 22 edition of World Street.
Didn't see that coming
American Express reported a third-quarter profit that surpassed Wall Street expectations thanks to disciplined expense management that helped offset weaker spending. The company’s focus on affluent customers has enabled it to maintain lower provisions for credit losses compared to peers serving a broader income range. By keeping incentives, rewards, and other costs in check, the credit card giant has managed to exceed profit forecasts, even amid slowing revenue growth.
Total expenses for the quarter came in at $12.08 billion, below the expected $12.74 billion, according to estimates from LSEG. Revenue increased by 8 percent to $16.64 billion, slightly missing the forecast of $16.67 billion. Profit reached $2.51 billion, marking a 2 percent rise from the previous year.
Tapping out
UBS is divesting part of the Credit Suisse business it acquired last year by selling the fallen bank's 50 percent stake in credit card provider Swisscard. The 50 percent holding will be sold to UBS's joint venture partner, American Express, according to a statement from Swisscard. Although the terms of the deal were not disclosed, the transaction will make Amex the sole owner of Swisscard. Credit Suisse customers will be transitioned to UBS’s existing credit card platform, while Swisscard will continue issuing cards under the American Express, Mastercard, and Visa licenses, and operate the American Express business in Switzerland.
Getting greedy
Jeff Bezos-backed Perplexity AI has begun fundraising discussions, aiming to more than double its valuation to $8 billion or more, according to a report by the Wall Street Journal. Perplexity is seeking to raise approximately $500 million in this new funding round, sources familiar with the matter told the Journal. The Nvidia-backed AI company’s estimated annualized revenue, based on recent sales, is around $50 million, the report noted.
Riding the wave
Genesys announced that it has confidentially filed for an initial public offering in the US, joining the wave of tech firms tapping into the booming AI market to attract investors. This comes as the IPO market rebounds, with investors showing renewed interest in tech startups after years of caution over high valuations. While Genesys, a developer of AI-powered call center software, did not disclose specific IPO details or a timeline, a Bloomberg News report from September suggested the company could raise up to $2 billion through the offering.
Stage exit
Disney has appointed James Gorman to succeed Mark Parker as its next chairman, effective January, as the company prepares to name a successor for CEO Bob Iger in early 2026, the company announced Monday. Gorman, who joined Disney’s board less than a year ago and became head of the succession planning committee in August, will continue to lead that committee after assuming the role from Nike Executive Chairman Parker. Although Disney initially aimed to announce a successor in 2025, pushing the date to 2026 allows the board more time to evaluate both internal and external candidates, according to sources familiar with the discussions.
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