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The Old-School Financial Stock That's Winning the Digital Revolution
The Motley Fool· 2025-09-28 16:30
This financial powerhouse is winning with younger users.If you thought companies like American Express, Goldman Sachs, and JPMorgan Chase were behind the digital curve, think again. These three companies are 175, 156, and 154 years old, respectively, but they're all part of the digital technology revolution. They're competitive with the newest and most innovative fintech companies, but they come with the stability of more than a century of financial management.I want to focus on American Express, which has ...
The younger consumer boom: Amex and luxury brands pursue Gen Z and millennials
Fortune· 2025-09-22 11:00
Group 1: American Express Strategy - American Express is focusing on retaining affluent, adventure-seeking customers aged 25 to 44 by tailoring offerings [1] - The company has introduced a new $400 annual credit for reservations through Resy, enhancing dining experiences for cardholders [2] - Card members utilizing Resy credit have increased their spending at U.S. Resy restaurants by 25% since the benefit was launched [3] Group 2: Targeting Younger Generations - Gen Z and millennials now account for 35% of all U.S. consumer spending for American Express, up from 19% in 2019 [4] - Tapestry, the parent company of luxury brands Coach and Kate Spade, is also targeting these demographics, anticipating they will represent over 70% of the market by 2030 [4] - Gen Z's spending power is projected to reach $12 trillion in the next five years, indicating their significant influence on future product offerings [5] Group 3: Long-term Customer Loyalty - Brands that successfully connect with Gen Z and millennials are positioning themselves for lasting customer loyalty and future growth [6]
AmEx Gets a Taste of Toast: And a Bigger Bite of Hospitality?
ZACKS· 2025-08-07 15:56
Core Insights - American Express Company (AXP) has established a multi-year strategic partnership with Toast, Inc. to enhance hospitality experiences by integrating guest data from its restaurant reservation platforms into Toast's systems [1][2] - This partnership strengthens AXP's position in the restaurant and hospitality ecosystem, creating a seamless guest experience from reservation to payment [2][4] - AXP differentiates itself from competitors by linking card membership to exclusive, data-enhanced hospitality services, which can drive higher loyalty and spending among cardmembers [3][5] Company Strategy - The integration of Resy and Tock listings into Toast's platforms enhances visibility and marketing for restaurants, potentially improving retention and attracting more establishments to Toast [4][7] - AXP's approach allows it to deepen customer relationships and expand merchant acceptance, while Toast benefits from new traffic sources and tools [4][5] Competitive Advantage - AXP sets itself apart from Visa and Mastercard by integrating deeply into the hospitality journey, offering personalized dining experiences and creating value beyond transactions [5][6] - This end-to-end control reinforces AXP's premium image and positions it as a hospitality partner rather than just a payment processor [5][6] Financial Performance - AXP shares have declined 0.5% year-to-date, while the industry has grown by 2.3% [6] - AXP trades at a forward price-to-earnings ratio of 17.87, below the industry average of 20.89, with a Value Score of B [9] - The Zacks Consensus Estimate for AXP's 2025 earnings is $15.26 per share, indicating a 14.3% increase from the previous year [10][12]
X @The Wall Street Journal
Industry Trend - Models and influencers can easily book entire days of meals and experiences in exchange for social media posts [1] - Regular people face fierce competition for restaurant reservations on platforms like Resy and OpenTable [1]
American Express(AXP) - 2025 FY - Earnings Call Transcript
2025-05-29 19:30
Financial Data and Key Metrics Changes - The company aims for a revenue growth target of 10%, driven by high single-digit billings growth, continued card fee growth, and lending growth slightly faster than billings [18] - The US consumer business has grown at a CAGR of 10.5% since 2019, indicating outperformance compared to the industry [18] - The company has about 5% of accounts in the US but 25% of fee-paying accounts, suggesting significant room for growth [18] Business Line Data and Key Metrics Changes - The millennial and Gen Z customer base has increased from 18% of volume in 2019 to 35% in the last quarter, growing at a 15% rate [10] - 60% of new customer acquisitions are from millennials and Gen Z, with 75% of gold and platinum cardholders in the US belonging to these demographics [11] - The SME segment has shown flat growth, while the overall commercial business has seen about 3% growth with nearly 8% revenue growth [59] Market Data and Key Metrics Changes - International markets are growing in the teens, with the company holding less than 6% market share in its top five markets [68] - The company has made significant progress in increasing coverage in 12 markets, aiming for 80% coverage in targeted cities [69] Company Strategy and Development Direction - The company is focused on customer-centric innovation and adapting to meet the needs of various demographics, particularly millennials and Gen Z [4][6] - The closed-loop network is a key differentiator, allowing for better data collection and marketing capabilities [13][14] - The company is investing in technology and replatforming backend systems to enhance operational efficiency and customer experience [90][92] Management's Comments on Operating Environment and Future Outlook - Management believes that consumer sentiment does not significantly affect their customer base, with unemployment being a more critical factor [50][51] - The company is optimistic about growth opportunities in international markets and the small business segment, which is still nascent [70] Other Important Information - The company has been investing in AI since 2010, which enhances underwriting decisions and fraud prevention [92] - The company is focused on maintaining a balance between marketing spend and operational expenses to ensure sustainable growth [78][80] Q&A Session Summary Question: How does the company plan to grow billings? - The company sees significant room for growth in billings, with a total addressable market (TAM) growing in mid to high digits annually [18] Question: What is the state of spending currently? - Spending has remained consistent across various segments, with strong performance in restaurants and stable airline spending [21][22] Question: How does the company ensure value for diverse demographics? - The company offers a variety of benefits tailored to different demographics, ensuring that each group finds value in their products [27][28] Question: What is the strategy behind the recent acquisition of Center? - The acquisition aims to enhance expense management capabilities, targeting middle-market companies and integrating with existing products [64][66] Question: How does the company view the competitive landscape? - The competitive environment is intense, but the company believes it has a strong position and continues to innovate to stay ahead [44][46]