What's the deal with American Express' spending spike last year? It's all about the younger folks! Last quarter, AmEx cardholders ramped up their spending by 8% compared to the previous year. This jump came after a slower period where growth rates hovered around 6% in the second and third quarters.

But who's behind this spending surge? Millennials and Gen Z users led the charge, with their transaction volumes jumping 16% in the fourth quarter, up from 12% in the third quarter. Meanwhile, older groups like Gen X and baby boomers were more cautious, with spending increases of 7% and 4%, respectively.

This spending boost wasn't just about buying stuff. Younger Americans love experiences, and that's reflected in AmEx's data. Travel and entertainment billings rose 11%, with a significant boost in airline spending, especially for business and first class tickets.

So, what's the buzz about 2025? AmEx's Chief Financial Officer, Christophe Le Caillec, is optimistic. He sees the 2 percentage point acceleration in spending from younger users as a good sign for the future.

But what about the stock market? AmEx shares dipped more than 2% in midday trading after the company reported earnings that met analysts' expectations. Despite the dip, the company's stock has been on a roll, hitting a 52-week high just before the earnings report.

Analysts at William Blair remain positive, noting that accelerating billing growth could help AmEx hit its target of at least 10% revenue growth. They're encouraging investors to buy the stock if there's a pullback.

Younger Cardholders Boost AmEx Spending Late Last Year

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