American Express Company (NYSE:AXP) is one of the best Warren Buffett stocks.
During the initial wave of consumer credit in the 1960s, American Express Company (NYSE:AXP) drew Buffett’s attention, prompting his acquisition of a 5% stake in the company. The company remains one of Berkshire Hathaway’s longest-held positions, appreciating significantly over the years. As of Q4 2025, the stake had grown to more than $56 billion, a massive increase from the Q4 2010 stake, valued at over $6.51 billion.
Meanwhile, American Express Company (NYSE:AXP) enjoys the confidence of hedge funds, with 83 out of 1,041 hedge funds remaining bullish on the stock. The combined hedge fund stake in the company totals $61.45 billion as of Q4 2025.
As of the same period, billionaire sentiment remains strong as well, with 22 out of 107 billionaires remaining bullish on American Express Company (NYSE:AXP), which translates into a $60.47 billion stake.
The bullish case for American Express is built on resilient spending from affluent customers, strong demand for premium cards, and a business model that continues to translate customer engagement into earnings growth and shareholder returns. While the stock is down 10% year-to-date, it climbed over 12% over the past month, as of April 20, 2026.
Meanwhile, discussing American Express Company (NYSE:AXP) in its Q4 2025 investor letter, GAMCO Investors, a diversified asset management firm, grouped AXP with other financial holdings that are benefitting from a steeper yield curve, a recovery in deal-making activity, a strong equity market, and solid spending by wealthier customers.
Additionally, Bretton Fund, a mutual fund, expressed a similar view more directly in its Q4 investor letter, noting that cardholders continued to spend and make timely payments, while the Platinum Card remained in high demand despite increasing competition. The firm also highlighted that EPS grew 15% and the stock delivered a 26% return during the quarter.
Jim Cramer commented at the start of April:
“I think that American Express was one of the worst performers. I think American Express down 17% seems pretty interesting to me. I’m willing to take a, I hate to say this, but a flyer, on some of these travel names, betting that they were too linked with gasoline. With gasoline, now breaching four dollars, but it can start coming down if the President says tonight, that the war’s going to end soon.”
Management’s fourth-quarter 2025 commentary earlier in 2026 supplemented this outlook.
The company reported record full-year 2025 revenue of $72 billion and EPS of $15.38, with card-fee growth in the double digits for the 30th consecutive quarter and strong credit quality. Millennials and Gen Z accounted for the largest share of U.S. consumer spending, while demand for premium products remained strong. The company also guided 2026 revenue growth of 9% to 10%, EPS in the range of $17.30 to $17.90, and a planned 16% increase in its dividend.
American Express Company (NYSE:AXP) operates as a global payments and premium lifestyle brand powered by technology. Its card-issuing, merchant-acquiring, and network businesses serve a wide range of customers, including consumers, small businesses, mid-sized firms, and large corporations worldwide.
While we acknowledge the risk and potential of AXP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AXP and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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