AXP - American Express: GenZ Travel Play

2024-05-23 08:36:55 ET

Summary

• American Express' stock price has increased by 37% due to improved dynamics with Amex consumers and appealing to Gen Z's preference for unique experiences.
• The future growth of Amex relies heavily on attracting and retaining Gen Z customers, who make up over 60% of new Amex accounts.
• Amex's strategic focus on premium benefits and loyalty appeals to Gen Z and provides a strong buffer against rising credit card default risks.

Investment Thesis

American Express ( AXP )’s stock price has increased by 37% since my last report in December, which I believe was caused by their improved dynamics with Amex consumers and appealing well to the preferences of younger generations, especially Gen Z. Comparing this generation to others, the one thing that stands out to me most is their valuation of unique experiences. With some of the features provided by Amex, I am confident the Amex card will be a crucial player in facilitating these experiences....

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