Shares of Charles Schwab (SCHW) are falling Tuesday after CEO Walt Bettinger II says the company needs to shrink to focus on corporate profitability. The bank released its second-quarter earnings, showing revenue rose less than 1% to $4.69 billion, with total client assets of $9.4 trillion.
Market Domination hosts Josh Lipton and Julie Hyman discuss the latest developments at the major bank and what it could mean for the stock price.
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This post was written by Nicholas Jacobino
Video transcript
Let’s take a look at Charles Schwab.
Uh, that stock price is down today after a mixed earnings report and the CEO’s warning that the company will have to cut back to remain profitable.
And when we talk about downsizing here, the reduction of business activities, it seems like this is part of that as well.
Um, the company did see new investment accounts in the quarter, up to 985,000.
That is an increase.
But it is less than analysts had expected.
And Schwab never quite got back on track after the SVB was blown up and the regional banking concerns perished.
Because this was one of the companies that seemed to be infected with it.
Yes.
I mean, you looked at the statistics and picked out the right ones.
Real?
I mean, adjusted earnings per share beat consensus, but other metrics weren’t as good. Total net new assets and new investment accounts lagged behind, and you can see the reaction.
And we lost about 10% of today’s trading.
Yes,