American Express Sees Continued Growth in Younger Demographics

American Express (AXP) continues to attract new consumer signups, particularly from millennial and Gen Z cohorts. In the second quarter, 65% of the company's new global card signups came from these younger demographics.

The leadership team is optimistic about the future, expecting revenue growth at a rate of 10% per year over the long term, with diluted earnings per share rising in the mid-teens.

The company's focus on investing to provide more value to its card members has led to increased expenses outpacing net revenue growth. However, this is seen as an intentional decision to bolster the business and capture spending on the American Express network.

As the rise of a cashless economy drives greater spending activity on the American Express network, the company benefits from ongoing economic growth and shifts in consumer behavior.