Josh Brown’s Best Stock Idea: American Express (AXP)- Says Stock Can Hit $400

Core Viewpoint - American Express (NYSE: AXP) is gaining attention due to its affluent client base, which is a significant driver for the company's growth [1][2]. Group 1: Financial Performance - American Express reported an 8% increase in revenues at constant currency for Q1, contributing to a stock performance of +18.6% in Q2 [3]. - The stock is approaching all-time highs, with potential to reach $400 over time as there are no natural sellers left [2]. Group 2: Customer Base and Market Strategy - 50% of spending in the U.S. economy comes from the top 10% of households, many of whom possess an AMEX Platinum card [2]. - Millennials and Gen Z now account for 35% of total U.S. consumer spending, prompting AXP to tailor products to capture this demographic [3]. Group 3: Product Development and Expansion - AXP is set to release upgrades to its U.S. Consumer and Business Platinum cards later this year, enhancing its offerings [3]. - The company is expanding its commercial side with new product launches aimed at working capital and expense management, which will increase transaction participation and switching costs for commercial card users [4].