American Express Co AXP has announced significant upgrades to its U.S. Platinum cards, adding new perks worth over $3,500 annually while increasing the annual fee by $200.Amex Revamps Platinum Perks, Raises Annual Fee to $895The updated perks will feature credits for dining via Resy, shopping at Lululemon LULU, and Uber One memberships, along with enhanced hotel and entertainment benefits, reported Reuters. Platinum Business cardholders will gain new credits for Dell DELL and Adobe purchases ADBE, a $600 ho ...

Competitive Landscape - The Strata Elite card, with a $595 annual fee, will compete with the Chase Sapphire Reserve and American Express Platinum cards [1]

Core Viewpoint - American Express is proactively betting on continued consumer spending despite economic uncertainties, showcasing resilience in its customer base and strong financial performance [1][2]. Financial Performance - American Express reported record revenue of $17.9 billion, a 9% increase year-over-year, driven by fee income from premium cards and higher net interest revenue [5]. - Net income decreased by 4% to $2.9 billion as the company invested in technology and risk management systems [5]. - Cardmember spending reached a quarterly record, up 7% from the previous year, excluding currency fluctuations [7]. Consumer Behavior - Spending on discretionary categories like airlines and lodging was softer, while purchases in restaurants and everyday goods remained stable [3]. - Millennials and GenZ cardholders increased their spending by 10% and nearly 40%, respectively, indicating a shift towards premium annual-fee products [7]. Risk Factors - The company is monitoring potential impacts from announced or future tariff increases, which could affect cardmember confidence and lead to higher everyday prices [4]. - Despite no significant impact in Q2 results, there is caution regarding how rising import costs may affect small business customers [4]. Strategic Initiatives - American Express is set to refresh its Platinum card this fall, enhancing travel and lifestyle benefits while adjusting fees only at renewal [8]. - The company has partnered with Coinbase to launch a new CoinbaseOne card, allowing rewards in digital assets and positioning itself in the crypto space [8]. International Growth - The company continues to experience double-digit growth outside the United States, with management noting millions of new merchant locations and higher premium annual fees compared to domestic offerings [9].