American Express (AmEx) has reported a notable spike in spending towards the end of 2024, driven by younger generations like millennials and Gen Z. After a slower start to the year, spending surged in the fourth quarter, giving the company a boost as it looks ahead to 2025.
Strong Year-End Spending Growth: A Big Win for American Express
American Express saw an 8% jump in spending on its cards during the fourth quarter of 2024, signaling a significant recovery after a slowdown earlier in the year. The growth rate had dipped from 7% early in the year to 6% during the second and third quarters, but the final months saw an uptick in spending across the board.
The real story, though, was the younger cardholders. Millennials and Gen Z users really stepped up their spending, pushing transaction volumes up by 16% in the fourth quarter—an impressive increase compared to the 12% growth in the third quarter. For AmEx, this was a bright spot and a sign of things to come.
Younger Generations Lead the Charge
While older generations like Gen X and baby boomers remained more cautious with their spending, the younger groups were out in full force. Gen X increased their spending by 7%, while baby boomers were more restrained, with just a 4% growth in billings.
But for AmEx, the real excitement is in the millennial and Gen Z market. These groups are not just using their credit cards more—they’re changing the way people spend. According to American Express CFO Christophe Le Caillec, this shift gives the company a lot of optimism going into 2025.
“We had very strong growth from Gen Z and millennials, and that 2 percentage point acceleration gives us a lot of optimism for 2025,” Le Caillec said.
What’s Driving This Boom?
So, what’s fueling this surge in spending, especially from the younger crowd? One key factor is a shift towards experiences over physical goods. Young Americans are known for prioritizing travel, dining, and entertainment over buying things. This trend is reflected in AmEx’s latest numbers.
Experience Over Goods: A Trend That’s Here to Stay
Spending on travel and entertainment saw a sharp increase of 11% in the fourth quarter, while spending on goods and services rose 8%. Airline spending, in particular, surged by 13%, with a significant jump in business and first-class ticket sales, which were up 19%.
“Travel and entertainment were big drivers, especially for younger Americans,” Le Caillec explained. “They’re not just booking flights, they’re upgrading to more premium experiences.”
In contrast, older groups like Gen X and boomers were less likely to splurge on travel or luxury experiences, with spending on goods taking a bigger slice of their budgets. But this generational divide shows just how much younger generations are shaping the future of spending.
AmEx’s Optimism for 2025
American Express is feeling optimistic about the future. The company has seen strong growth across all segments, but the younger generation’s continued enthusiasm for spending on experiences and premium products has left them especially hopeful. The first few weeks of 2025 have shown continued strength in transaction volumes, particularly in travel and entertainment sectors.
Le Caillec added that AmEx is encouraged by the spending uptick as they gear up for another big year. With Millennials and Gen Z leading the charge, the company feels confident that they can hit their revenue targets for 2025, aiming for at least 10% growth.
“We’re seeing accelerating billings growth, which we believe will be a key factor in helping AmEx meet its target of 10% revenue growth,” said William Blair analysts, who remain positive about the company’s prospects.
What Does This Mean for AmEx Investors?
While AmEx’s shares fell slightly after the earnings report—down more than 2% in midday trading—investors remain generally bullish on the company. The increased spending and strong growth outlook for 2025, especially from younger generations, have analysts confident that American Express is on the right track.
Shares of the company have already surged over the past year, hitting a 52-week high on Thursday, and despite the small dip on Friday, analysts are still encouraged by the trajectory.
“We remain buyers on any pullback,” William Blair analysts wrote, pointing out that AmEx’s strong positioning in the high-end credit card market, especially with its millennial and Gen Z customers, will likely drive long-term growth.
The Future of American Express: What to Watch For in 2025
As American Express looks ahead to 2025, all eyes will be on how the company capitalizes on the growing influence of younger cardholders. These groups, who are increasingly prioritizing experiences over material goods, will continue to drive AmEx’s growth in key sectors like travel, dining, and entertainment.
1. Continued Investment in Experience-Based Products
AmEx is expected to continue focusing on offering high-end, experience-driven products, particularly in the travel and entertainment sectors. For younger Americans, it’s no longer just about purchasing items; it’s about creating memorable experiences. This shift will likely play a central role in AmEx’s future strategies, ensuring they stay ahead of competitors like JPMorgan Chase in the high-end credit card market.
2. Expanding Services for Millennials and Gen Z
AmEx will likely focus more on catering to the unique needs of its younger customers. With millennial and Gen Z cardholders embracing a different approach to spending, AmEx will need to adapt its offerings to meet their expectations for convenience, exclusivity, and personalized services. This might mean expanding rewards programs, offering better travel perks, and providing more tailored financial products.
3. Keeping an Eye on Economic Conditions
Despite the growth, AmEx remains cautious about potential economic challenges. Consumer behavior is shifting, and the company will need to keep up with changing trends while also navigating potential economic uncertainty in 2025. But with a solid track record of growth and strong backing from its younger customer base, AmEx seems prepared for what lies ahead.
Conclusion: American Express Positioned for Growth in 2025
American Express is entering 2025 on a high note, with strong growth driven by its younger customer base. With millennials and Gen Z continuing to lead spending in categories like travel and entertainment, the company is well-positioned for sustained success in the new year. Although challenges remain, including economic uncertainty and increasing competition, the optimism surrounding AmEx’s ability to meet its revenue targets in 2025 remains high.
As millennials and Gen Z continue to shape the future of consumer spending, American Express is positioning itself to be the go-to brand for high-end credit cards and unique experiences. It’s a strategy that seems to be working—and could pay off handsomely in the years to come.

I am Aparna Sahu
Investment Specialist and Financial Writer
With 2 years of experience in the financial sector, Aparna brings a wealth of knowledge and insight to Investor Welcome. As an accomplished author and investment specialist, Aparna has a passion for demystifying complex financial concepts and empowering investors with actionable strategies. She has been featured in relevant publications, if any, and is dedicated to providing clear, evidence-based analysis that helps clients make informed investment decisions. Aparna holds a relevant degree or certification and is committed to staying ahead of market trends to deliver the most up-to-date advice.