3 Things Every American Express Investor Needs to Know
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By Anders Bylund – Mar 27, 2026 at 1:11PM ESTKey PointsOver 70% of new AmEx accounts are fee-paying products.Millennials and Gen Z now account for 65% of new American Express accounts globally.The company is building tools to let AI agents shop and pay on your behalf.Credit card veteran American Express (AXP 2.13%) published its annual chairman's letter to shareholders, outlining how 2025 worked out and what's going on in 2026. The document is a good read and a valuable supplement to January's full-year and Q4 2025 earnings report. I could nerd out about Chairman and CEO Stephen Squeri's presentation all day, but you don't have time for that. Let's just focus on three key items that deserve a closer look when you own or plan to buy AmEx stock. Image source: Getty Images. 1. Your AI assistant wants a credit card American Express really, really wants to talk about artificial intelligence (AI). The company has rolled out AI coding assistants to 11,000-plus engineers (cutting coding time by 30%), has built an AI chatbot fielding a million app inquiries a month, and is testing conversational AI to finally kill those "press 1 for account balance" phone menus. But the bigger bet is on what Squeri calls "agentic AI." These autonomous AI systems can shop and transact on behalf of users. It may be a little early to ask people to give AI bots control of their real-world spending, but I have to applaud American Express's willingness to be an early adopter. The company envisions AI agents booking travel reservations, enrolling users in valuable AmEx Offers, and booking the right hotels for every stay. Squeri compares the potential impact to the shift from physical to digital commerce. That's either visionary or the kind of thing management says in shareholder letters. Probably both. 2. Perks pay the bills This idea is old news, but American Express has a simple pitch. "Pay us an annual fee, and we'll make you feel fancy." The focus on premium experiences for high-quality clients is working. The company has now posted 30 consecutive quarters of double-digit net card fee revenue growth, with net card fees hitting a record $10 billion in 2025. And this isn't just existing cardholders grudgingly renewing their cards. Over 70% of new accounts are fee-paying products. People are lining up to pay $695 for a Platinum Card nowadays. Even those pricey top-level cards can make sense for the right customer. The value proposition centers on rewards, perks, and access -- things like airport lounge access, hotel status, and dining reservations through the Resy booking service (which AmEx owns). The model is self-reinforcing: Premium customers spend more, which brings in more merchant revenue, which funds more perks, which justifies higher fees. As long as AmEx keeps delivering value, those customers stick around. 3. Generation AmEx is younger than you think American Express has long had a reputation as the card your parents and grandparents carry. That's changing fast. Millennials and Gen Z made up 65% of new account acquisitions globally in 2025. For the fancy Gold and Platinum cards? That's 75%. The average new Platinum cardholder is 33. It's 29 for new AmEx Gold users. These aren't future customers AmEx is nurturing; they're the company's core growth engine right now. And Squeri pointed out that these cohorts already represent the largest share of U.S. consumer spending.Read NextMar 21, 2026 •By Eric VolkmanAmerican Express Stock Is Cheap, But Does That Make It a Buy Now?Mar 21, 2026 •By Neil Patel1 Reason Now Is a Great Time to Buy American Express StockMar 19, 2026 •By Daniel FoelberBuy This Berkshire Hathaway Stock Now and Thank Yourself in a DecadeMar 18, 2026 •By Rachel Warren9 Best Dividend Stocks to Buy and Hold for March 2026Mar 18, 2026 •By Anders Bylund2 Stocks Down Between 22% and 51% to Buy Right NowMar 17, 2026 •By Daniel Sparks1 Top Dividend Stock to Buy With Double-Digit Dividend and Earnings GrowthAbout the AuthorAnders Bylund is a contributing Motley Fool media and technology analyst covering semiconductors, cloud computing, internet infrastructure, quantum computing, and streaming media. Previously, Anders was a systems administrator for Nielsen Technology and CSX, gaining hands-on experience with enterprise-class systems. He was also a freelance writer for Ars Technica, TIME, USA Today, CNN, WIRED, and AOL's Daily Finance. He holds a bachelor’s degree in English and a master’s degree in library and information sciences from Florida State University. He believes in coyotes and time as an abstract.TMFZahrimX@TMFZahrimStocks MentionedAmerican ExpressNYSE: AXP$293.02(-2.13%)-$6.37*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.