American Express Stock Down 20% Since Peak: What to Expect Next

American Express stock has plummeted by 20% since reaching an all-time high in December 2025, trading at around $310 per share. The decline is largely attributed to a slowdown in earnings growth and higher expenses incurred by the company.

Despite solid revenue growth of 10% year-over-year in Q2, American Express' earnings rose only 11%, down from 18% in Q1 and 15% in Q4 2025. The company's increased spending on marketing and technology is a major contributor to this decline.

CEO Stephen Squeri explained that investing in customer acquisition and growth opportunities is essential for sustained revenue growth. However, some investors are concerned about the company's valuation, with its price-to-earnings (P/E) ratio decreasing from 25 at the end of 2025 to 18 currently.

With the Federal Reserve raising interest rates, American Express faces a challenging environment, as higher rates may put additional pressure on consumers. As such, investors are advised to wait until after the third-quarter earnings report for clearer guidance on the stock's future direction.