American Express (AXP) is raising the annual fee for its Platinum credit card to $895 from $695. That is a 29% jump. However, the company says the total value of annual perks is now $3,500, which is more than twice the previous level. In the meantime, AXP shares have climbed nearly 3% in yesterday’s trading, closing at $336.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
For consumer cardholders, the new perks include credits with Uber (UBER), Lululemon (LULU), and Oura. There is also a $400 dining credit through the restaurant booking service Resy, and added benefits for hotels and streaming. Business Platinum users will also receive $3,500 in annual benefits, including new hotel credits and added support for purchases with Dell Technologies (DELL) and Adobe (ADBE). Also, none of the current Platinum perks are being removed.
Meanwhile, the company is introducing a new app feature for its Platinum customers. It will help users enroll in credits and track them more easily. American Express said the aim is to make it simpler to claim the value that comes with the card.
A Competitive Market for Premium Cards
The move comes as rivals also upgrade their high-end products. JPMorgan Chase (JPM) recently added new hotel perks to its Sapphire Reserve card, while Citigroup (C) has refreshed its own premium cards. In fact, announcements from these firms often come within days of one another.
Still, the higher cost of membership may cause some customers to downgrade or switch to lower-fee cards from Capital One (COF) or Citigroup. Some card users in online forums have said the setup feels like a coupon book that only pays off if the credits are used.
Current consumer Platinum cardholders will begin to see the higher $895 fee starting with renewals on January 2, 2026.
Is American Express Stock a Buy?
On the Street, American Express scores a Neutral position overall. Out of 21 analysts submitting their ratings, seven rate it a Buy, while 11 rate it a Hold. The average AXP stock price target stands at $332.82, implying a 0.95% downside from the current price.
