Shares of American Express (AXP 1.34%) slipped 12.3% in February, according to data from S&P Global Market Intelligence. A new risk is potentially facing the business -- artificial intelligence (AI) -- which has investors spooked about the future of this credit card giant. The stock is down 20% from its highs, even after announcing strong 2026 earnings guidance and raising its dividend.
Here's why American Express stock fell in February, and if now is a good time to buy the dip for your portfolio.
NYSE: AXP
Key Data Points
Potential card network disruption
There was no internal company news from American Express in February. In fact, it did not produce a single press release on its Investor Relations page. The company reported earnings in January for Q4 2025, producing 16% growth in earnings per share (EPS) in the period. For 2026, it is guiding to 10% revenue growth and EPS of $17.90 or more.
So why did the stock fall? Because of a viral article outlining the potential disruption of AI-agentic commerce, which threatens traditional financial services. The theory goes that if an AI agent is left to do your bidding when buying things across the internet, it will look for the cheapest method of payment, which would put American Express cards at a disadvantage. This, in turn, could lead to greater adoption of new payment methods, such as stablecoins.
While an interesting idea, this misunderstands the full value proposition of the American Express ecosystem. Through its merchant partnerships, American Express can offer cardmembers a wide range of services, discounts, and other perks, such as Airport lounges, points rewards on travel bookings, and discounts at restaurants. This is not something an AI agent can replicate overnight.
Image source: Getty Images.
Time to buy the dip?
The threats from stablecoins and other novel forms of payment have been knocking on American Express's door for years, with huge proclamations that the death of the credit card networks is imminent.
It is hard to see this bear out in the numbers. American Express's revenue is up over 100% in the last 10 years, with it adding around 3 million net new cards in circulation every quarter after revamping its perks for younger audiences during the pandemic. Its share buyback program helps EPS grow faster than revenue, with significant operating leverage at play as it scales.
Today, American Express stock has a price-to-earnings ratio (P/E) back below 20. It is not overly cheap, but the stock probably does well for investors who buy today and hold for the long haul.
