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American Express stock is still a solid investment because management understands the value of its brand and is building a wide moat around it.
By
David Dittman
published
11 February 2026
in Features
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"Can I use your American Express card to try to get Harry Styles tickets in the Amex presale?" is a question my older daughter knows the answer to. We've always been big on experiences, especially live music.
"Of course," I texted back (all in, but also looking forward to the day my Gen Z offspring and her millennial husband have their own Amex account so they can cut me out of the business part of their fun).
Indeed, American Express (AXP) understands that people of all ages value experiences, and management has learned how to monetize what it knows on a consistent basis.
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Sign upYou might even say that's the "moat" the former freight forwarder, founded in the middle of the 19th century, has established here in the 21st century.
And my conversation with my daughter reveals why AXP, a consummate Warren Buffett stock, is still a solid investment.
"Aperture lets the light in"
A strong brand built on network effects and a high-spending and loyal customer base is the kind of thing the Oracle of Omaha and his acolytes adore.
That AXP is now one of the top two holdings in the Berkshire Hathaway equity portfolio is only partially a function of the effects of pop-star youth and beauty on the top and bottom lines.
But management's understanding of those effects does help explain why AXP is still a solid investment. Amex is doing particularly good business with millennials and Gen Z, even as Baby Boomers remain its bedrock (and Gen Xers like me man the picks and shovels).
Indeed, American Express must be at least as excited as I am about Zillennials exploring the privileges of membership.
Amex is unlikely to see the volume and earnings boost Capital One Financial (COF) enjoyed from its relationship with Taylor Swift and that pop star's "Eras" tour. (If I remember correctly, my younger daughter booked those tickets for herself and her sister.)
But the Dow Jones stock is well positioned to benefit from a broad roster that features Styles, the breakout star of the boy band One Direction, and backup for his "Love On Tour" roadshow this year.
Amex is also tied to Billie Eilish and provides support for her live act, as well as her Support+Feed initiative. The broad idea is to leverage high-demand experiences to drive card acquisition and increase spending.
Over time, big experiences build brand loyalty. And going beyond music is part of an effort to create authentic and collaborative partnerships with deeper meaning for younger generations than traditional endorsements.
Those things are all downstream of Buffett's concept of an economic moat: durable and sustainable competitive advantages that protect its long-term profits and market share.
American Express Platinum Card®
American Express Card Members get presale and reserved tickets, plus on-site perks like dedicated entrances, exclusive offers, and select venue benefits worldwide. See rates and fees.
"I'm told you're elevating"
"Millennials and Gen Z represent an attractive long-term tailwind for Amex," William Blair analyst Cristopher Kennedy writes. "Collectively, these customers represent 36% of U.S. consumer billings and posted 12% and 38% billings growth in the December quarter, respectively."
Younger cohorts are increasing transaction volume much faster compared to older Amex cardholders and "represent strong return on investment for Amex over the long term," Kennedy concludes.
Recent data suggests that millennials and Gen Z "are more engaged, give American Express a higher share of wallet, and have lower servicing costs."
Noting that the average tenure of Baby Boomer customers exceeds 20 years, the analyst says Amex should benefit as younger cohorts' income and wealth rise over time. Indeed. (Amen.)
Kennedy reiterated his Outperform (Buy) rating on AXP stock after management reported expectations-beating results for the fourth quarter of 2025 and shared upbeat guidance for 2026.
American Express said earnings grew by 16% year over year to $3.53 per share, as revenue grew 10% to $18.98 billion. Management forecast revenue growth of 9% to 10% and earnings growth of 12% to 16% for 2026.
Amex also announced a 16% dividend increase. Dividend growth is yet another function of management's successful shepherding of a well-known brand.
"As demonstrated in our results," CEO Stephen Squeri said, "our investments are paying off – driving increased customer demand, engagement and loyalty, while generating efficiencies across the enterprise and supporting our excellent credit performance."
The CEO said Amex will continue to execute its "proven investment philosophy," which includes strategic investment in its membership model.
It's fair (and fun) to wonder whether Warren Buffett has ever heard of Harry Styles, and vice versa.
At the same time, American Express management has figured out where those concepts intersect. Bottom line, that means AXP stock is still a solid investment.
DisclaimerWe may earn compensation when a customer clicks on a link, when an application is approved, or when an account is opened. We may not cover every available offer. Our relationship with advertisers may impact how an offer is presented on our site but our editorial selection of products is made independently. Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more. We calculate a typical annual reward for each card, assuming $36,000 spent annually and less any annual fee. Interest rates, fees, rewards and other terms listed in this article are subject to change. Before you apply for a credit card, check its current terms and conditions with the issuer.
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David DittmanInvesting EditorDavid Dittman is the former managing editor and chief investment strategist of Utility Forecaster, which was named one of "10 investment newsletters to read besides Buffett's" in 2015. A graduate of the University of California, San Diego, and the Villanova University School of Law, and a former stockbroker, David has been working in financial media for more than 20 years.
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