Looks like a great time to buy AXP to me - big dip after Q2 results but looking past the headlines, the core long-term investment thesis remains intact.
I went through the Q2 results
Strong Revenue & EPS Beat: Net profit rose 8% to $3.11B ($4.53 EPS vs. $4.40–$4.45 estimates), while total network volume reached $516.8B.
Why the Stock Is Down: Operating expenses grew 12% ($14.5B) to support higher customer engagement and marketing, slightly outpacing revenue growth (10%). Additionally, revenue ($19.64B) fell just short of consensus ($19.69B), and management opted to reinvest additional profits rather than raise full-year EPS guidance.
Younger Demographic Traction: Over 60% of new consumer accounts acquired in Q2 were Gen Z and Millennials, positioning the business well for long-term customer lifetime value.
Solid Credit Quality: Provisions for credit losses dropped to $1.1B with a stable 2.0% write-off rate, highlighting the resilience of their premium cardmember base.
For investors looking for positive operating leverage this quarter, the expense growth and guidance pause were a disappointment. For long-term investors holding through retirement, management spending money to acquire high-value customers and build brand moat is exactly what you want to see.
I added more this morning, anyone else buying or worried about AXP long term?
And its been going down for a little bit now and trading closer to the 52 week low