How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in American Express (AXP) ten years ago? It may not have been easy to hold on to AXP for all that time, but if you did, how much would your investment be worth today?
American Express' Business In-Depth
With that in mind, let's take a look at American Express' main business drivers.
Founded in 1850, NY-based American Express Company is a diversified financial services company, offering charge and credit payment card products, and travel-related services worldwide. AmEx earns revenue through both transaction fees and interest income, supported by a closed-loop payment network. Unlike open-loop peers (e.g., Visa or Mastercard), its integrated system allows AmEx to engage directly with both merchants and cardholders. This setup enables deeper customer insights, targeted marketing, and strong customer loyalty.
Its range of products and services include charge card, credit card and other payment and financing products; Merchant acquisition and processing, servicing and settlement, and point-of-sale marketing and information products and services for merchants; Network services; other fee services, including fraud prevention services and the design and operation of customer loyalty programs; Expense management products and services and Travel-related services.
AmEx’s reporting segments are as follows:
U.S. Consumer Services (USCS): (47.7% of 2024 total segment’s revenue net of interest expense) It issues a varied array of proprietary consumer cards. The segment also extends travel and lifestyle services and banking and non-card financing products to U.S. consumers.
Commercial Services (CS): (24%) This unit offers a wide range of proprietary cards, payment and expense management services coupled with banking and non-card financing products to U.S-based corporates and small business clients.
International Card Services (ICS): (17.4%) It issues a diversified range of proprietary consumer, small business and corporate cards outside the United States. Offering services to the international customers of American Express and managing specific international joint ventures as well as its loyalty coalition businesses are among the segment’s functions.
Global Merchant and Network Services (GMNS): (11.3%) It operates a global payments network that processes and settles card transactions, acquires merchants and extends multi-channel marketing programs and capabilities, services and data analytics through leveraging its integrated network capabilities.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in American Express ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in July 2015 would be worth $3,955.31, or a gain of 295.53%, as of July 16, 2025, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 196.28% and the price of gold increased 179.46% over the same time frame in comparison.
Analysts are forecasting more upside for AXP too.
American Express is benefiting from sustained revenue growth driven by new product launches, strategic partnerships and a rebound in travel and entertainment spending. The company's strong focus on younger demographics, targeted acquisitions and alliance-building is broadening its customer base and deepening merchant relationships. Strong cash generation and disciplined capital returns underscore its financial strength. ROE of 32.5% reflects efficient capital use. Its shares have outperformed the industry in the past year. However, persistently rising expenses continue to weigh on margins. Loan loss provisions remain elevated due to macro uncertainty. A high debt load and increased interest costs further pressure profitability. Additionally, its limited exposure to emerging non-card payment channels may constrain future competitiveness.
The stock has jumped 6.09% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 6 higher, for fiscal 2025; the consensus estimate has moved up as well.
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American Express Company (AXP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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