UPS and American Express (AXP) Announce An Expanded Agreement

American Express Company (NYSE:AXP) is one of the Best Stocks to Invest in for the Next 5 Years. On September 10, UPS and American Express Company (NYSE:AXP) announced an expanded agreement to support small businesses grow and drive commerce in the communities. They are rolling out new and exclusive offers to help SMBs. Notably, during the critical holiday season, when each and every transaction counts, small businesses tend to be dependent on credit cards to manage cash flow, stock inventory as well as to cater to increased demand.

American Express Company (NYSE:AXP)’s Q2 2025 results continued the healthy momentum, with revenues rising 9% YoY to reach a record $17.9 billion, and adjusted EPS increasing 17%. American Express Company (NYSE:AXP) saw record card member spending in Q2 2025, while the demand for its premium products remained strong. Also, its credit performance was best in class. The YoY revenue growth was mainly aided by higher Card Member spending, increased net interest income supported by growth in revolving loan balances, and robust card fee growth.

GreensKeeper Asset Management, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:

“The top contributor to the portfolio in the second quarter was American Express Company (NYSE:AXP) +18.6%. AXP’s affluent customer base continued to spend in Q1, with revenues up 8% at constant currency, causing the stock to end the quarter just shy of its all-time high. During Q2, AXP announced upgrades to its US Consumer and Business Platinum cards, which will be released later this year. AXP continues to tailor its products to capture the spending of younger consumers, with Millennials and Gen Z now accounting for 35% of total US consumer spending. We believe these investments will strengthen the company’s network effect and further lock young consumers into AXP’s ecosystem as their incomes and card spending continue to rise. Additionally, AXP is widening its use cases on the commercial side of the business with recent product launches tailored towards working capital and expense management. This should expand the number of transactions that AXP can participate in and increase switching costs with commercial card users.”

While we acknowledge the potential of AXP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.