American Express Shares Soar 4.15% on Strong Earnings

On May 12, 2025, American Express shares surged by 4.15% in pre-market trading, reflecting a strong start to the day's trading session.

American Express has been navigating a complex landscape shaped by global trade tensions and regulatory changes. The company's strategic decisions, such as focusing on a smaller slice of the global card-payments market compared to competitors like Visa and Mastercard, have been intentional and aimed at maintaining a balanced business model. This approach has enabled American Express to grow its revenue and earnings per share at compound annual growth rates of 10% and 12%, respectively.

Recent market fluctuations have presented a compelling buying opportunity for investors, as American Express is now trading 15% below its 52-week high. The company's earnings reports have consistently shown an increase in spending among wealthy consumers, defying tariffs and exceeding Wall Street expectations. This resilience is a testament to American Express's strong brand and customer loyalty.

Despite the challenges posed by global trade tensions, American Express continues to focus on its core strengths and strategic initiatives. The company's ability to adapt and innovate in a changing market environment positions it well for future growth and success.