How American Express's Amex Ads Launch (AXP) Has Changed Its Investment Story

• American Express recently unveiled Amex Ads, a digital advertising platform allowing brands to reach its 34 million U.S. consumer card members with targeted ad content, initially launching on AmexTravel.com and set to expand across additional company-owned platforms.
• This move builds on the success of Amex Offers, which in 2024 drove $15 billion in global card member spend, and leverages American Express's extensive first-party data to connect advertisers with valuable, high-spending audiences while prioritizing privacy and measurement capabilities.
• We'll explore how American Express’s expansion into digital advertising could influence the company’s investment narrative and growth outlook.

Outshine the giants: these 24 early-stage AI stocks could fund your retirement.

American Express Investment Narrative Recap

To be a shareholder in American Express, you need to believe in the company's ability to grow its premium cardholder base, sustain high levels of spending among affluent users, and maintain its reputation for service and exclusivity. The launch of Amex Ads could strengthen American Express’s ecosystem and create another lever for revenue, but it is unlikely to change the most important near-term catalyst, ongoing consumer spending strength, or outweigh the biggest risk: intensifying competition in the premium card segment.

Among recent announcements, the expansion of Platinum Card benefits stands out in relation to Amex Ads. By delivering further value to premium cardholders and differentiating the product line, these enhancements align with the key catalyst of attracting and retaining affluent, high-spending customers, which remains central to both short-term performance and long-term resilience.

However, in contrast, investors should be aware that the underlying shift toward digital wallets and alternative payment platforms may present...

Read the full narrative on American Express (it's free!)

American Express is forecast to reach $85.7 billion in revenue and $13.5 billion in earnings by 2028. This scenario assumes a 10.6% annual revenue growth rate and a $3.5 billion earnings increase from the current $10.0 billion.

Uncover how American Express' forecasts yield a $329.62 fair value, in line with its current price.

Exploring Other Perspectives

The most optimistic analysts expect American Express’s annual revenue growth to reach 11.1 percent and see earnings hitting US$14.7 billion by 2028. Their outlook counts on continued strong demand from younger customers and international markets. These projections are more upbeat than consensus, showing just how much opinions can differ. Your view of this new digital push, and whether it changes such expectations, is worth exploring before you make up your mind.

Explore 11 other fair value estimates on American Express - why the stock might be worth 24% less than the current price!

Build Your Own American Express Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your American Express research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free American Express research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate American Express' overall financial health at a glance.

Seeking Other Investments?

Don't miss your shot at the next 10-bagger. Our latest stock picks just dropped:

• This technology could replace computers: discover 26 stocks that are working to make quantum computing a reality.
• Uncover the next big thing with financially sound penny stocks that balance risk and reward.
• We've found 18 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com