Morgan Stanley's Q4 earnings beat expectations, driven by deal-making and trading activities, under Trump 2.0.

From Zacks Investment Research: 2025-01-27 09:16:28

Morgan Stanley’s shares have surged over 5.5% since releasing its Q4 and full-year 2024 results, reaching an all-time high of $139.04. The company’s top and bottom-line numbers exceeded expectations, driven by robust deal-making and trading activities. In Q4, Morgan Stanley’s IB fees soared 26.6%, with equity underwriting fees up 102.2% and advisory fees increasing by 47.1%. CEO Ted Pick remains optimistic about the IB business due to healthy M&A pipelines. With the new administration under President Trump 2.0 adopting a more lenient approach to deal-making, Morgan Stanley is poised for a strong performance in 2025.

Morgan Stanley has diversified its revenue streams, focusing on wealth and asset management operations. The company’s acquisitions and strategic moves have led to a more balanced revenue stream, with 55% of net revenues coming from both businesses in 2024. The Investment Management division saw a significant increase in net flows, while the Wealth Management division’s client assets grew by 21%. Despite a 57.3% jump in share price last year, technical indicators suggest continued strong performance for Morgan Stanley. Analysts are bullish on the company’s prospects, expecting earnings to grow by 13.3% in the long term.



Read more at Zacks Investment Research: Is MS Stock Worth Buying Post Q4 Earnings & Under Trump 2.0? – January 27, 2025