Is American Express a Buy Ahead of Its Platinum Card Refresh?

Amex revamps its flagship Platinum Card—but will it move the needle for investors?

The Refresh

American Express drops its Platinum Card overhaul, targeting high-net-worth millennials with enhanced travel perks and digital integration. New benefits include elevated lounge access, streaming service credits, and crypto-friendly payment options—because nothing says luxury like paying transaction fees to watch Netflix.

Market Position

Amex battles Visa and Mastercard in the premium segment, leveraging its closed-loop network to capture richer spending data. The refresh aims to counter rival offerings while boosting member retention—critical in a landscape where consumers flip cards faster than traders flip altcoins.

Investment Case

Wall Street watches for subscription revenue bumps and spending growth post-launch. Bullish signals include Amex’s affluent client base and pricing power. Bear case? Economic headwinds could squeeze discretionary travel spending—and let’s be real, even platinum cards can’t polish a recession.

Bottom Line: Amex bets big on premiumization while finance traditionalists scoff. Because in today’s economy, nothing hedges inflation like a metal card that costs more annually than most cryptocurrencies.

Image source: Getty Images.

Resilient growth backed by premium engagement

Recent results reinforce the strength of the business. In the second quarter of 2025, revenue ROSE 9% year over year to a record $17.9 billion, and earnings per share were $4.08. On an adjusted basis that excludes last year's gain from the sale of Accertify, earnings per share increased 17% year over year.

Management also highlighted record cardmember spending and reaffirmed full-year 2025 guidance for revenue growth of 8% to 10% and earnings between $15.00 and $15.50 per share.

"We saw record Card Member spending in the quarter, demand for our premium products was strong, and our credit performance remained best in class," said Chairman and CEO Stephen Squeri in the company's earnings release. He also pointed to the upcoming Platinum refresh this fall as a driver to "sustain our leadership in the premium space, drawing on our competitive strengths."

Under the hood, the company's revenue mix continues to shift toward high-margin revenue. Net card fees -- a key proxy for the strength of premium value propositions -- climbed 20% year over year to about $2.48 billion in the quarter. That stream has compounded at roughly 17% annually since 2019, supported by strong acquisition, elevated renewals, and ongoing product updates.

Meanwhile, discount revenue (the fee American Express earns from merchants when a cardmember uses an Amex card to make a purchase) increased 6% and net interest income rose 12% as revolving balances grew, underscoring American Express's broad-based growth drivers.

Importantly, credit metrics remain solid as well: Cardmember loan net write-offs held near 2% to 2.4% across recent quarters, and past-due rates stayed low, supporting the company's confidence in its full-year outlook.

Why the Platinum refresh enhances the bull case

American Express all but confirmed this week on social media that the new U.S. consumer and business Platinum cards will debut this week, on Sep. 18.

The company's playbook for card refreshes is well-rehearsed from previous refreshes: Add or tune benefits, boost the value for the cardmember, and attract new customers or upgrades from lower-fee products. Historically, this has translated into higher engagement and steadily rising fee revenue -- exactly the trend visible in recent quarters. A fresh Platinum lineup may accelerate that trajectory by giving existing members reasons to stay and new prospects reasons to join while reinforcing the brand's travel and lifestyle positioning.

Even before management has data on the overhauled card's performance, the company is upbeat. Guidance implies another year of healthy growth, and the franchise has room to keep compounding via several levers: premium customer acquisition (including younger cohorts), resilient spend among affluent consumers, continued build-out of travel experiences and dining (including Centurion Lounges and restaurant initiatives), and disciplined risk management.

On valuation, shares at around $325 trade at roughly 21 times the midpoint of 2025 earnings guidance. That's a reasonable price-to-earnings ratio for a payments and premium lifestyle platform with double-digit card-fee growth, record spend, and a long runway to add value to membership.

Of course, there are some risks to bear in mind. A slower macro backdrop could temper spending growth, and a poorly received value and pricing change for the U.S. consumer and business Platinum card could spur churn. But taken together -- reaffirmed guidance, strong fee momentum, stable credit, and a clear catalyst in the Platinum rollout -- the return profile looks compelling.

There is no guarantee that the stock will react positively on launch day. Over a multiyear horizon, though, this looks like a great entry point for investors seeking a high-quality compounding business at a reasonable price.