American Express Stock Analysis: Buy, Sell, or Hold?
American Express (NYSE: AXP) stock has declined by approximately 20% from its December 2025 all-time high of $384.79 per share and is currently trading at around $310 as of early September 2026, down 16.3% year-to-date. The drop follows a strong three-year performance driven by economic growth, low inflation, and robust consumer spending. However, in 2026, rising inflation and higher gas prices have dampened travel and discretionary spending. The stock's decline is attributed to slower earnings growth compared to previous quarters due to increased expenses from marketing and technology investments aimed at acquiring high-spending customers. While revenue grew by 10% year-over-year in Q2, the company raised its full-year revenue guidance but maintained its earnings outlook, raising concerns about future spending pressure. The stock's valuation has also played a role; after reaching a P/E ratio of 25 at the end of 2025, it is now down to 18. Analysts suggest holding for now and waiting for more economic clarity or better entry points before making investment decisions.
Tickers: $AXP
Topics: American Express consumer spending earnings decline economic conditions stock performance