10 Best Digital Currency and Payments Stocks To Invest In

7. American Express Company (NYSE:AXP)

Number of Hedge Fund Holders: 62

American Express Company (NYSE:AXP) is a leading global payments company that is known for its integrated platform that includes card-issuing, merchant-acquiring, and card network services. The company caters to a wide range of clients, from individual consumers to large corporations, making it a significant player in the payments industry.

In the third quarter of 2024, American Express Company (NYSE:AXP) achieved record revenues of $16.6 billion, marking an 8% increase compared to the previous year. The net income also rose to $2.51 billion, or $3.49 per share, up from $2.45 billion or $3.30 per share a year earlier. This financial performance highlights the company’s robust growth trajectory and effective management strategies. A key driver of this success is the increase in Card Member spending, which grew by 6% in the same quarter. Additionally, revenue from card fees surged by 18%, demonstrating the company’s ability to attract and retain premium card members. American Express Company (NYSE:AXP) welcomed 3.3 million new premium card acquisitions, maintaining high retention rates and strong credit performance.

The company has been actively refreshing its product offerings to meet evolving consumer needs. Since the start of 2024, American Express Company (NYSE:AXP) has completed 40 product refreshes, including the launch of a new US Consumer Gold Card tailored for Millennial and Gen-Z consumers, who represent 80% of new accounts for this product. These product enhancements focus on popular categories like dining, which has seen a 7% increase in spending year-over-year.

AXP is one of the best digital money stocks to buy. Given these positive trends in financial performance, innovative strategies, and strong market positioning, American Express Company (NYSE:AXP) presents a compelling investment opportunity in the digital currency and payments sector.

GreensKeeper Asset Management stated the following regarding American Express Company (NYSE:AXP) in its Q3 2024 investor letter:

“American Express Company (NYSE:AXP) was our second-largest contributor this quarter, with a return of +17.1%. AXP continues to invest in its customers beyond traditional credit card rewards, recently enhancing its Global Dining Access to provide Platinum cardholders with exclusive reservations at premier restaurants worldwide. This focus on unique experiences has attracted a younger demographic, with millennials and Gen Z driving most of the customer acquisition and card spending growth in recent quarters. Exclusive events are more challenging to replicate than standard point reward systems, presenting a challenge for competing card issuers that lack AXP’s scale and concentrated base of affluent consumers. AXP has fine-tuned its offerings over decades to strengthen its network effect and shows no signs of slowing down.”