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Morgan Stanley's stock remained flat after reporting better-than-expected Q4 earnings of $2.68, surpassing the consensus of $2.41. Net earnings rose 18% to $4.397 billion. Analyst Ebrahim H. Poonawala maintained a Buy rating, raising the price target from $210 to $220, citing strong Wealth Management performance. The firm’s integrated business model and AI-driven productivity gains support future profitability. Poonawala increased fiscal 2026 earnings estimates by 4.5% to $11.45, with a forecasted return on tangible common equity of 21.9%. Morgan Stanley shares reached a new 52-week high at $192.26.
A group of Home Depot investors is urging the company to review its partnership with surveillance firm Flock Safety, following reports that its data has been used in ICE investigations. The investors, led by Zevin Asset Management, are concerned about data privacy and civil rights risks associated with sharing information with third-party vendors. They seek an assessment of potential financial and legal risks stemming from misuse of customer data. Home Depot has faced criticism for ICE raids occurring near its stores, and the company states it cannot interfere with federal enforcement agencies.
Goldman Sachs and Morgan Stanley reported significant profit increases in the fourth quarter, driven by a booming stock market and increased deal-making activity. Goldman Sachs saw a 12% rise in net earnings, reaching $4.62 billion, or $14.01 per share. Morgan Stanley also experienced a notable profit jump, reflecting the overall positive trend in the investment banking sector.
Morgan Stanley's profit surged in the fourth quarter, driven by a revival in investment banking, with revenue rising to $2.41 billion from $1.64 billion a year earlier. The bank reported a profit of $4.40 billion, or $2.68 per share, compared to $3.71 billion, or $2.22 per share, a year prior. This growth reflects a broader trend on Wall Street, as major transactions pushed global mergers and acquisitions past $5.1 trillion, fueled by enthusiasm over AI and Federal Reserve rate cuts. Shares rose 1.6% in premarket trading.
AbbVie is expanding its presence in the obesity treatment market by leveraging Gubra's weight-loss drug, GUBamy, which mimics the hormone amylin. This drug aims to provide an alternative to GLP-1 drugs like Wegovy and Zepbound, focusing on better tolerability and durability of weight loss. AbbVie believes its existing aesthetics business positions it well, as patients seeking cosmetic treatments are also interested in weight loss solutions. The obesity drug market is projected to reach $150 billion in annual sales within the next decade.
