Every American Express (AXP) Investor Should Watch This Crucial Metric
American Express (NYSE: AXP) has demonstrated remarkable resilience amid the competitive financial landscape. As of October 20, 2025, shares have surged by 18% this year, outperforming the broader S&P 500 index. With quarterly revenue and earnings per share surpassing Wall Street expectations, the company signals a strong operational performance. However, every American Express investor should pay close attention to a critical metric that indicates the company’s long-term potential.
American Express: A Model of Pricing Power
One of American Express’s most impressive qualities is its robust pricing power—the ability to raise fees while retaining a loyal customer base. In the third quarter, the average annual fee for active cardholders reached $119, marking an extraordinary 72% increase since Q3 2020. This figure is pivotal for investors, demonstrating the brand’s strength and its attractively high-income clientele willing to pay for premium services.
American Express consistently enhances the value it offers its cardholders through enticing perks. The recent refresh of the Platinum Card introduced attractive shopping credits at popular retailers like Lululemon and exclusive dining experiences at Resy-affiliated restaurants. This initiative led to a significant increase in average weekly new card sign-ups, effectively doubling previous numbers and underscoring strong demand.
Should You Invest in American Express Now?
If you’re contemplating an investment in American Express, it’s essential to evaluate your options carefully. The Motley Fool’s Stock Advisor team recently identified ten stocks deemed better positioned for substantial returns, notably leaving American Express off the list. Historical data indicates that many of these recommended stocks, such as Netflix and Nvidia, have provided transformative returns for early investors.
As you shape your investment strategy, remember that American Express’s formidable pricing power is a key factor to consider. While the company shows promise, the competitive landscape and shifting market conditions call for cautious deliberation.
In conclusion, every American Express investor should not only appreciate the company’s robust historical performance but also maintain a keen eye on its key financial metrics. These insights will ultimately inform your investment decisions in this high-quality business.