American Express CFO says spending picked up at year-end, thanks to millennials and Gen Z
Published On Jan 24, 2025, 1:22 PM
American Express (AmEx) experienced an 8% year-over-year increase in spending on its cards during the fourth quarter of 2024, reflecting a strong preference among millennials and Gen Z for experiencing travel and entertainment. This uptick marked a recovery after declines earlier in the year where growth was at 7% and 6% in the second and third quarters. Despite the positive performance, AmEx shares fell over 2% following the earnings report. Analysts are optimistic about future growth driven by the younger demographic's spending habits, particularly in the travel sector.
Stock Forecasts
AXP
Positive
The significant increase in spending, particularly among younger consumers, suggests a positive trend for American Express as it expands its user base and captures spending in the high-end credit card market. This growth is likely to continue if travel and entertainment spending picks up, bolstered by post-pandemic recovery dynamics.
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