Charles Schwab stock drops after CEO's downsizing comments – Yahoo Finance

Charles Schwab (SCHW) shares are falling on Tuesday after CEO Walt Bettinger II argued that the company needs to downsize to focus on profitability. The bank reported second-quarter earnings, saying revenue rose less than 1% to $4.69 billion and total client assets reached $9.4 trillion.

Anchor of market dominance Josh Lipton and Julie Hyman We analyze the latest developments at major banks and how they may affect stock prices going forward.

For more expert insights and the latest market trends, click here to watch this entire episode of Market Domination.

This post Nicholas Jacobino

Video Transcript

Let’s look at Charles Schwab.

Well, its shares are falling today following a mixed earnings report and a warning from its CEO that the company will have to downsize to stay profitable.

When we’re talking here about downsizing, reducing business lines, it seems like that could be the case here.

Well, the company increased new brokerage accounts to 985,000 during the quarter.

That’s an increase.

However, it fell short of the levels analysts had expected.

And after the SVB collapse and the regional banking concerns, Schwab never necessarily bounced back completely.

Because this company was one of the companies that seemed to be affected.

Yeah.

So you were looking at the metrics and pointing out the right ones.

Really?

So, after adjustments, you know, earnings per share beat consensus, but the other metrics weren’t as good, net new assets, new brokerage accounts weren’t there and we’re seeing that reaction.

And trading today is down about 10%.

yes,