Charles Schwab stock drops after CEO's downsizing comments
The bank posted its second quarter earnings which showed revenue increased less than 1% to $4.69 billion, with total client assets reaching $9.4 trillion.
Market Domination anchors Josh Lipton and Julie Hyman break down the latest development for the major bank and what it could mean for its stock moving forward.
Uh, that stock is sinking today after a mixed earnings report and the CEO warning, the company is gonna have to downsize in order to maintain profitability.
And when we're talking about downsizing here, um, shrinking the lines of business, it sounds like could be part of this.
Um, the company did see new brokerage accounts in the quarter up to 985,000.
That is an increase.
But it's short of what analysts had been anticipating.
And Schwab sort of never necessarily gotten its groove totally back after we had the sort of SVB blow up and the regional banking concerns.
Because this was one of the companies that seemed to be infected by that.
Yeah.
I mean, you looked through the metrics and you were calling out the right ones.
Really?
I mean, adjusted, you know, earnings per share did beat consensus, but other metrics not as good total, uh, net new assets, uh, new brokerage accounts fell short there, and you can see the reaction.
And we've down about 10% of today's trade.
Yes,
Market Domination anchors Josh Lipton and Julie Hyman break down the latest development for the major bank and what it could mean for its stock moving forward.
For more expert insight and the latest market action, click here to watch this full episode of Market Domination.
This post was written by Nicholas Jacobino
Video Transcript
Let's take a look at Charles Schwab.Uh, that stock is sinking today after a mixed earnings report and the CEO warning, the company is gonna have to downsize in order to maintain profitability.
And when we're talking about downsizing here, um, shrinking the lines of business, it sounds like could be part of this.
Um, the company did see new brokerage accounts in the quarter up to 985,000.
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But it's short of what analysts had been anticipating.
And Schwab sort of never necessarily gotten its groove totally back after we had the sort of SVB blow up and the regional banking concerns.
Because this was one of the companies that seemed to be infected by that.
Yeah.
I mean, you looked through the metrics and you were calling out the right ones.
Really?
I mean, adjusted, you know, earnings per share did beat consensus, but other metrics not as good total, uh, net new assets, uh, new brokerage accounts fell short there, and you can see the reaction.
And we've down about 10% of today's trade.
Yes,
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