Amex Stock: 2 Experts Argue Pros and Cons of ‘Buying the Dip’ Amid Trump Tariff Drama
Written by
Jake Safane
Edited by
Jenna Klaverweiden
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
In the recent stock market turmoil that has coincided with President Donald Trump’s reciprocal tariffs, so many stocks across industries have taken substantial hits. Even companies that aren’t necessarily directly affected by tariffs, due to not basing their business on imported goods, have seen their share prices tumble, considering the interconnectedness of the global economy.
Take American Express (AXP) stock. The credit card company’s stock closed at $275.25 on April 2, 2025, and it had fallen to $231.39 at the close on April 8, 2025. That’s approximately a 16% decrease in less than one week.
While some reciprocal tariffs have temporarily been paused and the stock has seen some gains since, it’s still down over 16% for the year, as of April 10. Does this dip present a good buying opportunity? Here are some of the pros and cons of investing in American Express stock right now amid tariffs.
Pros of Investing in American Express
On the positive side, investing in American Express might be beneficial due to the company’s overall strength, reputation and ability to navigate an economic downturn, according to experts.
“The company’s balance sheet is strong. Amex has weathered plenty of storms, and it has done it better than most companies,” said Joe Camberato, CEO of National Business Capital, a business lending platform.
While American Express is exposed to the risk of a downturn, it could still be a better pick than some other companies that could take longer to recover, if at all.
“The downside is the company is heavily tied into the business world, so if there’s a business [downturn], then Amex will feel it. But the company is built for that kind of pressure. American Express is incredibly selective about who it lends to,” Camberato said. “So if the economy hits a rough patch, I would still bet on Amex being in a much better position than many other consumer-focused credit card companies that take on riskier borrowers.”
Relatedly, American Express is potentially in a better position than some other competitors due to its relatively high annual credit card fees for some of its products, especially if the economy holds up. These annual charges create “a subscription-like stability,” said Michael Ashley Schulman, CFA, chief investment officer and founding partner at Running Point Capital Advisors, a multifamily wealth management firm.
For example, American Express has its premium Platinum Card with an annual fee of $695, and “there’s substantial runway to grow this high-margin revenue stream in a normal economy,” Schulman said.
American Express has also made some strategic investments in new areas that could provide growth. For example, Schulman pointed to its recent investment in Blackbird Labs, a restaurant loyalty and payments platform, founded by the creator of reservation app Resy, which was acquired by American Express in 2019.
Granted, Blackbird “aims to disrupt the payments industry that Amex depends on,” according to Schulman, but the “investment shows they’re not sitting still, either.”
Cons of Investing in American Express
While there are several cases to be made as to why American Express stock could hold up well, there are also several risks that could cause the company to lag behind competitors.
For one, the relatively high fees on some of its cards could end up being a negative if consumers are still swiping their cards but want to do so without paying so much for the privilege.
“Their affluent cardholders simply don’t sweat inflation the way mass-market consumers do, but in an economic downturn, we could see customers trade down to cheaper options or completely retire their high-priced Amex cards,” Schulman said.
Things could get particularly difficult if American Express fails to convert on some customer acquisition goals.
In its fourth quarter 2024 earnings report, the company said it projects 2025 revenue growth of 8% to 10%. This target largely depends on younger consumers “who might lack the financial resilience of their traditional base if the economy cools,” Schulman said. “We’re already seeing early warning signs of spending moderation while their marketing machine burns serious cash to maintain growth in an intensely competitive rewards landscape.”
Similarly, if businesses contract or at least slow down corporate spending, they might be less eager to use American Express cards or the company’s other offerings.
Plus, any investment carries risk, but choosing one company over another can be particularly risky, as you don’t have the insulation that diversification provides. For example, the financial services industry might perform relatively well over the next few years, but perhaps American Express will lose market share due to Visa, Mastercard and Discover launching more attractive offerings.
Or maybe the financial services industry as a whole will struggle due to less business and consumer borrowing, while consumer staples will hold up as everyone continues to shop for necessities.
That said, if you do want to invest in particular stocks, there’s a case to be made that American Express is an attractive pick, but it could also be subject to further decline.
“Overall, their management team has consistently demonstrated cost discipline and maintains multiple levers to sustain earnings even as revenue growth normalizes, but in a downturn, Amex stock could get disposed of along with other financial names,” Schulman said.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
More From GOBankingRates
