Morgan Stanley shares fall amid market turmoil from AI startup disruption
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 07 2024
0mins
Should l Buy MS?
Source: SeekingAlpha
Morgan Stanley (MS.N) shares fell 3.01% as the stock hit a 20-day low, reflecting broader market concerns.
The decline follows a significant drop in shares of U.S. brokerages after wealth management startup Altruist launched AI-enabled tax planning features, which triggered fears about the future of traditional financial firms. This market turmoil has led to a selloff in global software stocks, impacting Morgan Stanley's performance amid rising competition from AI-first startups.
The implications of this disruption could lead to increased pressure on legacy financial institutions as they adapt to the evolving landscape, potentially affecting their market positions and profitability.
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Analyst Views on MS
Wall Street analysts forecast MS stock price to rise
14 Analyst Rating
7 Buy
7 Hold
0 Sell
Moderate Buy
Current: 171.150
Low
132.00
Averages
185.00
High
219.00
Current: 171.150
Low
132.00
Averages
185.00
High
219.00
About MS
Morgan Stanley is a global financial services company. The Company is engaged in providing a range of investment banking, securities, wealth management and investment management services. Its segments include Institutional Securities, Wealth Management and Investment Management. Its Institutional Securities segment provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Its Wealth Management segment provides an array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Its Investment Management segment provides a range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Its investment banking services consist of capital raising and financial advisory services, including the underwriting of debt and other products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Diversified Investment Structure: The MSABF 2026-1 securitization features a multi-tranche investment-grade note structure rated by KBRA, designed to offer investors diversified exposure to consumer credit while addressing the needs of insurance clients and asset managers.
- Stable Funding Support: This structure not only provides stable funding for loan origination partners but also helps insurance capital efficiently access consumer credit through predictable cash flows and a long-term reinvestment framework, aligning with their asset-liability management objectives.
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- Analyst Target Adjustments: At least ten analysts lowered their price targets after Wendy's fourth-quarter and full-year 2025 earnings release, with Goldman Sachs reducing its target from $8 to $7 and Morgan Stanley from $9 to $8, both maintaining sell ratings.
- Sales and Net Income Drop: Although Wendy's beat earnings expectations for the quarter, total sales fell 8% year-over-year to $3.4 billion, and non-GAAP net income plummeted 36% to $0.16 per share, indicating significant weakness in the company's fundamentals.
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See More
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