American Express Shares Drop 0.16% to 2025 Low as Post-Earnings Skepticism, Macro Headwinds Weigh

American Express (AXP) shares fell 0.16% on Thursday, marking the lowest level since September 2025, with the stock intraday declining 0.57%. The move reflects heightened investor caution amid broader market uncertainties and sector-specific challenges.

Despite strong second-quarter earnings that exceeded forecasts, the stock’s post-earnings weakness underscored skepticism about future growth. While revenue rose 9% year-over-year and earnings per share surged 17%, concerns lingered over macroeconomic headwinds, including rising interest rates and inflation, which could dampen consumer spending—a core driver for the company’s premium card business. Analysts noted that high-net-worth clients, a key revenue segment, may face reduced discretionary spending in a tightening economic environment.

Strategic initiatives aimed at countering competitive pressures, such as the Platinum card upgrade and partnerships with platforms like Coinbase for digital currency rewards, have not fully alleviated investor doubts. Intensifying competition from rivals and emerging fintech firms continues to challenge American Express’s market share in the premium card segment. Additionally, regulatory scrutiny of high-margin fee structures and potential antitrust risks has added to the cautious sentiment.

Global currency volatility further complicates the outlook. A stronger U.S. dollar and geopolitical uncertainties threaten to erode international revenue, particularly in emerging markets where the company operates. While the firm maintains full-year growth guidance, the market’s mixed reaction highlights a divide between short-term pessimism and long-term confidence in its strategic adaptability.

Institutional investor activity has mirrored this duality. Some firms trimmed holdings in early September, signaling near-term caution, while others increased stakes, reflecting belief in the company’s resilience. Analyst price targets remain widely divergent, with views ranging from bearish to bullish, underscoring the complexity of evaluating its valuation in a dynamic financial landscape.