Core Insights - American Express (NYSE: AXP) has shown significant stock performance, with a price increase of 180% over the past five years, and a total return of 198% when including dividends [1] - Berkshire Hathaway holds a 22.1% stake in American Express, which has increased to represent 16.5% of its overall portfolio due to the company's stock buyback strategy [3] Company Performance - American Express has a strong brand presence in the credit card industry, offering premium cards that appeal to affluent customers, which contributes to its financial success [5] - The company has demonstrated pricing power, with an average fee per card increasing by 75% from 2020 to 2025, and it maintains lower delinquency and charge-off rates compared to industry averages [6] - Revenue (net of interest expense) has grown by 120% over the past decade, while diluted earnings per share have increased by 205%, with long-term growth targets set at 10% for revenue and mid-teens for earnings [7]

It has been a while, but at the end of August 2025, I reiterated my sell rating on American Express Company ( AXP ). In that analysis, I found that even though the company beatI'm a full-time investor with a strong focus on the tech sector. I graduated with a Bachelor of Commerce Degree with Distinction, major in Finance. I'm also a proud lifetime member of the Beta Gamma Sigma International Business Honor Society. My core values are: Excellence, Integrity, Transparency, & Respect. I always, to the best of ...

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Core Insights - American Express Company (NYSE:AXP) is recognized as one of the top digital currency and payments stocks to invest in currently [1] - The company forecasts a revenue growth of 9% to 10% and earnings per share between $17.30 and $17.90 for 2026, exceeding analyst expectations [2] - Billed business for Q4 increased by 9% to $445.1 billion, with revenue rising by 10% to $18.98 billion and profit per share increasing from $3.04 to $3.53 year-over-year [2] Spending Trends - AmEx card spending by retail customers in the U.S. surged by 9% during the Thanksgiving holiday week, contributing to an overall spending increase of 7.7% [3] - The affluent consumer base continues to drive strong spending, indicating robust demand for American Express services [2][7] Market Context - Investors are closely monitoring President Trump's proposed one-year restriction on credit card interest rates, which is opposed by industry organizations and is seen as unlikely to pass [3] - The proposal has had a negative impact on financial markets, causing declines earlier in January [3] Company Operations - American Express operates in card issuing, merchant acquiring, and card network services, offering a range of financial products including credit cards, savings accounts, and corporate programs [4]

Core Insights - American Express Company (AXP) shares increased by 1.3% after the release of Q4 2025 results, despite earnings slightly missing expectations, driven by strong customer engagement and premium spending [1][11] Financial Performance - Q4 2025 earnings per share (EPS) were reported at $3.53, missing the Zacks Consensus Estimate by 0.3%, but reflecting a 16% year-over-year increase [4] - Total revenues for Q4 2025 reached $19 billion, a 10% year-over-year increase, exceeding consensus estimates by 0.8% [4] - U.S. Consumer Services segment pre-tax income was $1.6 billion, up 0.3% year-over-year, but fell short of estimates by 5.3% [5] - Global Merchant and Network Services segment pre-tax net income was $884 million, a 4% year-over-year increase, but missed the consensus estimate [5] - Commercial Services pre-tax income rose 3% to $837 million, beating estimates [6] - International Card Services pre-tax income surged to $316 million from $34 million a year ago, exceeding the consensus mark [6] Future Outlook - American Express projects 2026 revenues to increase between 9% and 10% from the 2025 level of $72.2 billion, with EPS expected in the range of $17.30-$17.90, indicating a 14.4% improvement from 2025 [7] - The Zacks Consensus Estimate for 2026 EPS is pegged at $17.51, signaling continued growth [7] Market Performance - Over the past year, AXP shares gained 17.3%, outperforming competitors Visa Inc. and Mastercard Incorporated, which saw declines of 6.5% and 4.3% respectively [9] Valuation Metrics - American Express trades at a forward P/E of 20.4X, above its five-year median of 17.3X and the industry average of 11.3X, indicating a valuation premium [13] - The stock currently trades about 6.3% below its 52-week high of $387.49 and below the Wall Street average price target of $375.22, suggesting a modest upside [12] Strategic Positioning - American Express differentiates itself through its integrated payments model, capturing a larger share of transaction economics compared to peers [15] - The company maintains strong credit quality with a provision for credit losses increasing just 1% year-over-year to $5.3 billion, reflecting stable borrower behavior [18] - AmEx is targeting affluent, experience-driven Gen Z and Millennial consumers to build a future customer base, aiming for sustained profitability [19] Financial Health - The company ended 2025 with $47.8 billion in cash and cash equivalents, providing flexibility for growth investments and shareholder returns [20] - During the year, AmEx deployed $5.3 billion toward share repurchases and distributed $2.3 billion in dividends [20]

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Core Insights - The American Express consumer is showing strong spending behavior, with billings growth accelerating in the second half of 2025 compared to the first half [1] Group 1: Consumer Spending Trends - Global consumer spending has been consistently strong throughout the year, ranging between 7% and 8% [2] - There was an uptick in spending in the second half of the year, indicating positive consumer confidence [2] - Travel and Entertainment spending has been particularly robust, with front-of-cabin spend increasing by 9% and lodging at luxury properties rising by 12% [2]

Core Viewpoint - The renewed multiyear agreement between American Express and the NBA is expected to enhance the company's brand visibility and engagement with sports fans, potentially driving customer loyalty and increasing transaction volumes [2][8]. Agreement Details - American Express will increase its investment in the WNBA and add USA Basketball, including both Men's and Women's National Teams [2]. - The deal positions American Express as the entitlement partner for NBA Tip-Off and NBA G League Tip-Off, enhancing visibility and engagement with basketball fans [2]. Earnings Performance - American Express reported quarterly revenue growth of 10% year-over-year to $18.98 billion, exceeding the analyst consensus estimate of $18.92 billion [4]. - The revenue increase was driven by higher Card Member spending, increased net interest income, and strong card fee growth [4]. - The company expects full-year revenue of $78.73 billion to $79.45 billion, representing a 9%-10% year-over-year increase, compared to the analyst consensus estimate of $78.62 billion [5]. Stock Performance and Technical Analysis - American Express shares are currently trading 2.2% above the 20-day simple moving average (SMA) and 2.4% above the 100-day SMA, indicating longer-term strength [6]. - The stock has increased 17.97% over the past 12 months and is closer to its 52-week highs than lows [6]. - The RSI is at 48.86, suggesting neutral territory, while the MACD indicates bullish momentum [6][7]. Analyst Outlook - The stock carries a Hold Rating with an average price target of $340.80, with recent analyst moves reflecting cautious optimism regarding growth prospects [12]. - Evercore ISI Group maintained an In-Line rating and lowered the price target to $393 from $400 [1][14]. Quality and Momentum - American Express exhibits strong fundamentals with a quality score of 77.04, indicating a solid business model [15]. - The momentum score is 69.4, showing positive price trends, although not in the strongest category [15].

Core Viewpoint - American Express has renewed a multiyear agreement with the NBA, enhancing its brand visibility and engagement with sports fans, which may positively influence investor sentiment [1][8]. Agreement Details - The new agreement includes increased investment in the WNBA and USA Basketball, positioning American Express as the entitlement partner for NBA Tip-Off and NBA G League Tip-Off [2]. - A connected member program will be launched with NBA ID, offering exclusive benefits to American Express Card Members and NBA ID members [2]. Earnings Performance - For the quarter ending January 30, American Express reported a revenue growth of 10% year-over-year to $18.98 billion, exceeding analyst expectations of $18.92 billion [4]. - The revenue increase was driven by higher Card Member spending, increased net interest income, and strong card fee growth [4]. Future Projections - American Express anticipates full-year revenue between $78.73 billion and $79.45 billion, reflecting a 9%-10% year-over-year increase, surpassing the analyst consensus estimate of $78.62 billion [5]. - The company expects earnings per share (EPS) in the range of $17.30 to $17.90, compared to the analyst consensus of $17.41 [5]. Technical Analysis - American Express shares are trading 2.2% above the 20-day simple moving average (SMA) and 2.4% above the 100-day SMA, indicating longer-term strength [6]. - The stock has increased by 17.97% over the past 12 months and is closer to its 52-week highs [6]. Analyst Outlook - The stock currently holds a Hold rating with an average price target of $340.80, reflecting a fair P/E multiple and positive growth prospects [12]. - Recent analyst actions include a lowered price target from Evercore ISI Group to $393 and from Truist Securities to $400 [14]. Quality and Momentum - American Express has a quality score of 77.04, indicating strong fundamentals, while the momentum score of 69.4 suggests positive price trends, albeit not exceptionally strong [15].

American Express Company (NYSE:AXP) 2026 Conference Summary Company Overview - **Company**: American Express Company (AXP) - **Date of Conference**: February 10, 2026 - **Key Speaker**: Christophe Le Caillec, CFO Key Points Industry and Market Performance - **Consumer Spending**: Global spend growth remained strong at 7% to 8% throughout the year, with an uptick in the second half of 2025 [6][7] - **Travel and Entertainment**: Notable growth in travel and entertainment spending, particularly front-of-cabin travel at 9% and luxury lodging at 12% [6] - **Holiday Shopping**: Holiday shopping season saw a 9% increase, with Platinum card members spending up 12% [7] Financial Health - **Consumer Credit Metrics**: American Express reported very low write-off and delinquency rates, indicating a strong consumer balance sheet [7] - **Fee Performance**: The company has seen strong performance in fee income, particularly from premium products, which supports the business model [8] Card Acquisition and Strategy - **New Card Acquisitions**: There was a sequential decline in new cards acquired from Q3 to Q4 2025, but this was attributed to the non-linear nature of marketing programs [22][25] - **Focus on Fee-Paying Cards**: The strategy emphasizes acquiring fee-paying card members rather than maximizing the number of new cards [25] - **Average Fee Increase**: The average fee paid per account increased significantly due to high demand for premium products, particularly the Platinum Card [23][24] Product Development and Engagement - **Platinum Card Refresh**: The recent refresh of the Platinum Card has been more successful than previous refreshes of Gold and Delta cards, with strong demand and engagement metrics [29] - **Travel Bookings**: A 30% increase in travel bookings was reported, attributed to the new Platinum value proposition [32] - **Engagement Metrics**: High retention rates of 99% for consumer cards and 98% for small business cards were noted [31] International Growth - **International Market**: International growth is a major source of revenue, with a focus on premium products and younger demographics, particularly Gen Z and millennials [55] - **Market Share**: American Express holds about 6% market share in major international markets, indicating significant growth potential [56] Technology and Operational Efficiency - **Tech Investments**: The company plans to reach $5 billion in annual tech spend, focusing on AI and operational efficiencies [70] - **Operational Efficiency**: Operating expenses as a ratio to revenue decreased from 26% to 22% over three years, highlighting improved operational leverage [72] Valuation and Shareholder Returns - **Stock Buybacks**: The company is committed to returning capital to shareholders through stock buybacks, with a focus on maintaining a strong return on equity of 36% [86][87] - **EPS Growth Guidance**: American Express is guiding towards mid-teens EPS growth, supported by strong credit profiles and business momentum [86] Regulatory Environment - **Credit Card Competition Act**: The company maintains a neutral stance on the Credit Card Competition Act, indicating that it does not expect significant impacts on its business model [10][14] Additional Insights - **Consumer Behavior**: The company noted that younger consumers prefer digital interactions, with 63% of Gen Z interactions occurring online compared to only 13% for Baby Boomers [79] - **Lending Innovations**: The introduction of features like "Pay Over Time" has contributed significantly to balance growth, meeting the revolving needs of premium card members [48][52] This summary encapsulates the key insights and metrics discussed during the American Express conference, highlighting the company's strong performance, strategic focus on premium products, and commitment to shareholder value.