FORTUNE: American Express saw its market value drop more than $5 billion after Costco said it would not remain in a partnership with the credit card company.
FORTUNE: American Express saw its market value drop more than $5 billion after Costco said it would not remain in a partnership with the credit card company.
AmEx shares dropped to their lowest levels since mid-October on Thursday after the credit card company announced that its exclusivity deal with wholesale club retailer Costco is set to expire at the end of March 2016. The market reacted swiftly and sharply to the prospect of Costco no longer accepting AmEx cards. AmEx is currently the only credit card accepted by the retailer, which is one of the largest U.S. retailers with nearly 470 stores across the country.
The credit card company’s shares dropped to around $80 in early trading and were recently trading down by about 6.7%, at $80.88. The steep decline erased roughly $5.9 billion from the payment card giant’s market value, which is still nearly $88 billion.
Read more here.
