American Express Surges to Top 5 Trading Volume Despite 1.66% Dip as Premium Strategy and Fee Growth Fuel Long-Term Outlook

On July 30, 2025, American Express (AXP) traded with a volume of $0.95 billion, marking a 71.52% increase from the previous day’s activity. Despite the surge in trading interest, the stock closed down 1.66%, reflecting mixed investor sentiment amid broader market dynamics.

Recent analysis highlights American Express’s strategic focus on premium cardholders, a segment driving sustained growth. The company’s upcoming Platinum Card refresh is anticipated to accelerate fee growth, which has already shown a 20% year-over-year rise in net card fees. With a 2.1% industry-low net write-off rate and a 21x forward P/E ratio, the stock remains positioned for long-term gains through diversified revenue streams, including swipe fees, service charges, and stable interest income.

Operational strengths include a controlled ecosystem of high-income consumers, bolstered by lifestyle-centric benefits and partnerships. Unlike mass-market rivals, American Express’s proprietary network insulates it from macroeconomic volatility, with consistent underwriting practices and a robust net interest income of $4.2 billion in the most recent quarter. These factors underscore its resilience amid broader consumer spending shifts.

Backtesting results indicate that a strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day generated a 166.71% return from 2022 to the present. This outperformed the benchmark return of 29.18%, achieving an excess return of 137.53% and a compound annual growth rate of 31.89%.