Amex Thrives Despite Economic Uncertainty

Amex Thrives Despite Economic Uncertainty

American Express is thriving despite global economic uncertainty. In Q1, total billed business rose 7.5% year over year, boosting revenue to $17 billion—an 8% increase. CEO Stephen Squeri credited the strong performance to continued spending by the company’s affluent customer base, especially in restaurants and hotels. Even with a slight dip in airline spending, overall trends remained strong.

A major growth driver was the addition of 3.4 million new cardholders, 60% of whom were Gen Z and millennials. These younger users increased their spending by 14% during the quarter, compared to 5% for Gen X and just 1% for boomers. Traditionally associated with older, affluent users, Amex is now gaining popularity with younger consumers drawn to its lifestyle perks.

Squeri highlighted the success of Amex’s strategic investments in experiences like dining, supported by acquisitions such as Resy and Tock, and the relaunch of its Gold Card, which offers strong restaurant rewards.

Despite ongoing recession fears, Squeri said Amex remains optimistic and expects 8% to 10% revenue growth this year. So far, credit performance remains healthy, and spending trends are holding steady, showing no signs of slowdown due to past purchasing behavior

Netflix Surges After Beating Expectations

Netflix shares jumped over 4% in after-hours trading Thursday following better-than-expected Q1 earnings and a confident outlook despite low U.S. consumer sentiment and growing economic uncertainty.

The company reported $10.54 billion in revenue, slightly beating expectations of $10.51 billion. Earnings per share came in at $6.61, far surpassing the $5.71 Wall Street forecast. CEO Greg Peters said the economic turmoil, partly fueled by Trump’s intensifying trade war with China, hasn’t significantly impacted Netflix. Customer retention remains solid, and viewer engagement is strong.

Executives credited Netflix’s resilience to entertainment being less affected in downturns and its flexible pricing tiers, including an $8 ad-supported plan. While advertising revenue remains a small part of the business and could be vulnerable, new ad-buying tools are drawing interest from marketers.

Notably, this was the first quarter Netflix chose not to report subscriber numbers, citing the growing complexity of its revenue model. Still, it reaffirmed its long-term goal of reaching a $1 trillion market cap, doubling revenue, and tripling operating income by 2030.

The streaming giant’s hit show Adolescence helped boost Q1 engagement and was named the third most-watched English-language series ever on the platform. Netflix’s momentum continues, even amid a shaky economy.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.