American Express (AXP) | News Based Sentiment Analysis

• On September 9, 2025, American Express reported that its cards are now accepted at approximately 160 million merchants worldwide, a five-fold increase over the past eight years. This expansion, particularly strong internationally where average spending on Amex cards is four times higher than competitors, significantly boosts its global reach and potential revenue.
• UPS and American Express announced an expanded agreement on September 10, 2025, to support small and medium-sized businesses (SMBs) ahead of the holiday season. This collaboration offers exclusive savings on UPS shipping via American Express' Business Savings Suite, demonstrating a commitment to providing value-added services to its business cardholders.
• American Express secured a "cornerstone" sponsorship at MetLife Stadium, home to the New York Jets and Giants, effective next season, as announced on September 10, 2025. This deal, building on their recent NFL league credit card sponsorship rights, enhances brand visibility and strengthens ties with a key demographic.
• Shares of American Express (AXP) jumped 11% in August, a trend noted on September 5, 2025, driven by increased optimism regarding potential Federal Reserve interest rate cuts. Lower rates are expected to stimulate economic activity, benefiting Amex through increased spending and potentially lower default rates.
• In the second quarter of 2025, American Express’s revenue increased 9% year-over-year, and adjusted earnings per share were up 17%, as reported on September 9, 2025. Card fees rose by 20%, contributing 14% of total revenue, fueled by record cardmember spending and demand for premium products, while the company repurchased $1.4 billion in stock.
• Analyst ratings for AXP remain mixed as of September 9, 2025, with 11 Bullish, 2 Bearish, and 16 Neutral ratings from Wall Street analysts, alongside 7 Seeking Alpha author ratings. This divergence highlights differing perspectives on the company’s valuation and future prospects.
• Motley Fool analyst Jennifer Saibil highlighted American Express as a top stock pick for September on September 9, 2025, citing its strong performance, potential benefits from anticipated interest rate cuts, and focus on affluent, younger customers. This positive assessment reinforces confidence in the company’s strategy and growth potential.
• American Express confirmed a refresh for its Platinum Card, effective September 18, 2025, including new benefits like hotel, Resy, and Lululemon credits, but also an increased annual fee to $695 or $895. This move aligns with Amex’s strategy of enhancing card offerings to attract and retain high-spending cardmembers.

The Investment Story: September showcased American Express’s continued growth in revenue and card acceptance, bolstered by strategic partnerships and positive analyst attention. However, the Platinum Card refresh with a higher fee introduces a potential risk of impacting cardholder acquisition and retention.

What It Means for Investors: The strong financial performance and expanding merchant base suggest continued upside potential, but investors should monitor the impact of the Platinum Card fee increase and the mixed analyst sentiment. The company’s success in attracting younger, high-spending customers and expanding internationally are key drivers of future growth.

Looking Ahead: Investors should anticipate Amex GBT's updated guidance in November, which will provide a clearer picture of the CWT acquisition's impact. The effectiveness of the Platinum Card refresh in attracting and retaining members will also be a key area to watch.

The Bottom Line: American Express remains a fundamentally strong company with a valuable brand and a clear strategy for growth, but investors should be aware of the mixed signals and potential headwinds. The company’s ability to navigate the evolving economic landscape and manage its premium card offerings will be critical for sustained success.