Can Coinbase really grow bigger than Schwab in 2025? 3 things need to happen.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 18 2024
0mins
Should l Buy SCHW?
Source: MarketWatch
- Market Prediction: Matthew Hougan from Bitwise Asset Management predicts that Coinbase will surpass Charles Schwab in market capitalization next year.
- Industry Impact: If this occurs, Coinbase would become the largest brokerage firm globally.
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Analyst Views on SCHW
Wall Street analysts forecast SCHW stock price to rise
16 Analyst Rating
14 Buy
1 Hold
1 Sell
Strong Buy
Current: 95.080
Low
91.00
Averages
116.64
High
148.00
Current: 95.080
Low
91.00
Averages
116.64
High
148.00
About SCHW
The Charles Schwab Corporation is a savings and loan holding company. The Company, through its subsidiaries, engages in wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The Company provides financial services to individuals and institutional clients through two segments: Investor Services, and Advisor Services. The Investor Services segment provides retail brokerage, investment advisory, and banking and trust services to individual investors, and retirement plan and business services, as well as other corporate brokerage services, to businesses and their employees. The Advisor Services segment provides custodial, trading, banking and trust, and support services to independent registered investment advisors (RIAs), independent retirement advisors, and recordkeepers. Its products and services include brokerage, mutual funds, exchange-traded funds (ETFs), managed investing solutions, alternative investments, banking, and trust.
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.
Charles Schwab Corporation Releases January 2026 Activity Report
- Client Account Growth: As of January 31, 2026, Charles Schwab Corporation reported 38.7 million active brokerage accounts, 5.8 million workplace plan participant accounts, and 2.2 million banking accounts, indicating a robust expansion in its client base that enhances its competitive position in the market.
- Client Asset Scale: The total client assets managed by the company reached $12.15 trillion, reflecting a year-over-year increase that showcases Schwab's strong performance in wealth management and further solidifies its status as a leader in financial services.
- Service Diversification: Schwab offers a comprehensive range of wealth management, securities brokerage, banking, and asset management services through its subsidiaries, catering to diverse client needs, which enhances customer loyalty and drives revenue growth.
- Optimistic Market Outlook: With increasing market demand for financial services, Schwab's diversified offerings and strong client base provide a solid foundation for future growth, and it is expected to continue attracting more investors.
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Charles Schwab Corporation Monthly Activity Report for January 2026
- Core Net New Assets Growth: In January 2026, Charles Schwab's core net new assets totaled $27.8 billion, reflecting a 65% decrease from January 2025, yet demonstrating the company's stable performance in seasonal inflows, indicating sustained client interest in investments.
- Significant Increase in Client Assets: As of the end of January 2026, total client assets reached $12.15 trillion, an 18% increase from January 2025, showcasing the company's success in attracting new clients and growing asset management, further solidifying its market position.
- Rise in New Account Openings: The number of new brokerage accounts opened in January was 476,000, a 10% increase compared to the same month in 2025, indicating effective client acquisition strategies that enhance the company's competitive edge.
- Active Trading Activity: January saw an average daily trading volume of 9.5 million trades, a 23% increase from the previous month, reflecting heightened investor engagement in the equity markets, which could drive future revenue growth for the company.
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- Wealth Transfer Expectations: Lee noted that while these young customers are not wealthy today, a significant wealth transfer of trillions is anticipated in the coming decades, providing long-term growth opportunities for MrBeast's financial platform.
- MrBeast's Influence: With 330 million subscribers, Lee described MrBeast as one of the most impactful entertainment brands globally, and the integration of cryptocurrency into his financial services platform is expected to attract a large number of young users, further solidifying his market position.
- Strategic Partnership with Step: MrBeast's investment in Step allows BitMine to align with Step, focusing on Gen Z and Gen Alpha consumers while leveraging the rise of a
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- AI Fears in Financial Stocks: Concerns regarding artificial intelligence's impact on financial stocks are perceived as exaggerated.
- Market Sentiment: The current market sentiment suggests that the potential threat of AI is not as significant as some investors believe.
- Investment Perspective: Investors may be overreacting to AI developments, which could lead to mispricing in financial stocks.
- Long-term Outlook: The long-term outlook for financial stocks remains positive despite the ongoing discussions about AI.
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- Brokerage Pressure: Investment banks and brokerage firms are under pressure following the rollout of AI tools by fintech firm Altruist, with forward P/E ratios declining from 24.7 to 15.9, as the market fears that AI could replace traditional advisors in the future, leading to long-term margin compression.
- Insurance Broker Anxiety: Insurance brokers are facing disruption due to the integration of AI-driven tools, with the S&P Insurance Brokers industry index down 4% year-to-date; while the insurance sector remains relationship-driven, there are concerns that AI could erode commissions, impacting brokers' income stability.
- Asset Management Damage: Alternative asset managers are indirectly affected by significant exposure to private software companies, with many large firms down double digits year-to-date, as declining public software valuations raise concerns about their private portfolios, shrinking exit opportunities.
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- Earnings Miss: Robinhood Markets reported $4.5 billion in revenue for Q4 2025, falling short of analyst expectations, which led to an 8.91% drop in stock price, reflecting investor concerns about the company's future profitability.
- Surge in Trading Volume: Despite the stock decline, trading volume reached 68.3 million shares, approximately 146% above the three-month average, indicating sustained market interest that could provide a foundation for future rebounds.
- Cryptocurrency Impact: With Bitcoin losing 43% of its value over the past six months, Robinhood, as a leading crypto broker, faces pressure from digital asset volatility, although it has fared slightly better, still down over 30% in the same period.
- Analysts Lower Price Targets: Following the earnings report, analysts from Piper Sandler, JPMorgan, and Compass Point cut their price targets for Robinhood, reflecting a cautious market outlook on its growth potential, particularly amid weak revenue from crypto and options trading.
See More
Charles Schwab Corporation Releases January 2026 Activity Report
- Client Account Growth: As of January 31, 2026, Charles Schwab Corporation reported 38.7 million active brokerage accounts, 5.8 million workplace plan participant accounts, and 2.2 million banking accounts, indicating a robust expansion in its client base that enhances its competitive position in the market.
- Client Asset Scale: The total client assets managed by the company reached $12.15 trillion, reflecting a year-over-year increase that showcases Schwab's strong performance in wealth management and further solidifies its status as a leader in financial services.
- Service Diversification: Schwab offers a comprehensive range of wealth management, securities brokerage, banking, and asset management services through its subsidiaries, catering to diverse client needs, which enhances customer loyalty and drives revenue growth.
- Optimistic Market Outlook: With increasing market demand for financial services, Schwab's diversified offerings and strong client base provide a solid foundation for future growth, and it is expected to continue attracting more investors.
See More
Charles Schwab Corporation Monthly Activity Report for January 2026
- Core Net New Assets Growth: In January 2026, Charles Schwab's core net new assets totaled $27.8 billion, reflecting a 65% decrease from January 2025, yet demonstrating the company's stable performance in seasonal inflows, indicating sustained client interest in investments.
- Significant Increase in Client Assets: As of the end of January 2026, total client assets reached $12.15 trillion, an 18% increase from January 2025, showcasing the company's success in attracting new clients and growing asset management, further solidifying its market position.
- Rise in New Account Openings: The number of new brokerage accounts opened in January was 476,000, a 10% increase compared to the same month in 2025, indicating effective client acquisition strategies that enhance the company's competitive edge.
- Active Trading Activity: January saw an average daily trading volume of 9.5 million trades, a 23% increase from the previous month, reflecting heightened investor engagement in the equity markets, which could drive future revenue growth for the company.
See More
MrBeast's Financial Platform Could Shift Youth Investment Trends
- Shift in Youth Financial Preferences: Thomas Lee, Chairman of BitMine Immersion, highlighted that MrBeast's entry into finance could significantly alter the financial preferences of younger generations, particularly Gen Z and Gen Alpha, who together represent about 120 million people in the U.S., indicating substantial market potential.
- Wealth Transfer Expectations: Lee noted that while these young customers are not wealthy today, a significant wealth transfer of trillions is anticipated in the coming decades, providing long-term growth opportunities for MrBeast's financial platform.
- MrBeast's Influence: With 330 million subscribers, Lee described MrBeast as one of the most impactful entertainment brands globally, and the integration of cryptocurrency into his financial services platform is expected to attract a large number of young users, further solidifying his market position.
- Strategic Partnership with Step: MrBeast's investment in Step allows BitMine to align with Step, focusing on Gen Z and Gen Alpha consumers while leveraging the rise of a
See More
Concerns Over AI Impact Financial Stocks, Including Charles Schwab: Reasons to Invest Now.
- AI Fears in Financial Stocks: Concerns regarding artificial intelligence's impact on financial stocks are perceived as exaggerated.
- Market Sentiment: The current market sentiment suggests that the potential threat of AI is not as significant as some investors believe.
- Investment Perspective: Investors may be overreacting to AI developments, which could lead to mispricing in financial stocks.
- Long-term Outlook: The long-term outlook for financial stocks remains positive despite the ongoing discussions about AI.
See More
AI Trade Sentiment Reverses, Four Major Industries Hit Hard
- Software Sector Hit: The iShares Tech-Expanded Software Sector ETF (NYSE:IGV) has plummeted nearly 20% year-to-date, making it the worst-performing industry, as fears mount that AI tools could disintermediate traditional software providers, causing forward P/E ratios for application software to drop from 35.3 to 23.7 and systems software from 35.5 to 23.3, reflecting market concerns over future earnings durability.
- Brokerage Pressure: Investment banks and brokerage firms are under pressure following the rollout of AI tools by fintech firm Altruist, with forward P/E ratios declining from 24.7 to 15.9, as the market fears that AI could replace traditional advisors in the future, leading to long-term margin compression.
- Insurance Broker Anxiety: Insurance brokers are facing disruption due to the integration of AI-driven tools, with the S&P Insurance Brokers industry index down 4% year-to-date; while the insurance sector remains relationship-driven, there are concerns that AI could erode commissions, impacting brokers' income stability.
- Asset Management Damage: Alternative asset managers are indirectly affected by significant exposure to private software companies, with many large firms down double digits year-to-date, as declining public software valuations raise concerns about their private portfolios, shrinking exit opportunities.
See More
Robinhood Markets Shares Drop 8.97% Following Earnings Miss
- Earnings Miss: Robinhood Markets reported $4.5 billion in revenue for Q4 2025, falling short of analyst expectations, which led to an 8.91% drop in stock price, reflecting investor concerns about the company's future profitability.
- Surge in Trading Volume: Despite the stock decline, trading volume reached 68.3 million shares, approximately 146% above the three-month average, indicating sustained market interest that could provide a foundation for future rebounds.
- Cryptocurrency Impact: With Bitcoin losing 43% of its value over the past six months, Robinhood, as a leading crypto broker, faces pressure from digital asset volatility, although it has fared slightly better, still down over 30% in the same period.
- Analysts Lower Price Targets: Following the earnings report, analysts from Piper Sandler, JPMorgan, and Compass Point cut their price targets for Robinhood, reflecting a cautious market outlook on its growth potential, particularly amid weak revenue from crypto and options trading.
See More
