Core Viewpoint - The article promotes BAD BEAT Investing, highlighting its focus on short- and medium-term investments, income generation, and teaching investors to become proficient traders through in-depth research and clear trade targets [1] Group 1: Company Overview - Morgan Stanley (MS) is identified as a bank stock that has been actively traded, particularly during the strong banking year of 2025 [1] - BAD BEAT Investing is led by Quad 7 Capital, a team of seven analysts with nearly 12 years of experience in identifying investment opportunities [1] Group 2: Investment Strategy - The investment approach includes both long and short trades, with a historical average of 95% long and 5% short since May 2020 [1] - The service offers various benefits, including weekly well-researched trade ideas, access to chat rooms, daily analyst upgrade/downgrade summaries, and education on basic options trading [1] Group 3: Performance and Track Record - BAD BEAT Investing has a proven track record of success, emphasizing the importance of understanding market dynamics and executing trades effectively [1]

Core Insights - Alumis Inc. (NASDAQ:ALMS) is recognized as one of the top 14 booming stocks to buy currently, with HC Wainwright & Co. raising its price target from $20 to $40 while maintaining a Buy rating [1][2] Group 1: Trial Results and Drug Approval - The price target adjustment by HC Wainwright & Co. followed promising results from Phase 3 ONWARD1 and ONWARD2 trials, which evaluated the efficacy of envudeucitinib in patients with moderate to severe plaque psoriasis [2] - Both trials successfully achieved their primary and secondary endpoints, demonstrating safe usage and tolerability among patients, who reported significant improvements in quality of life through reduced itching [3] - Alumis Inc. plans to file for FDA approval of envudeucitinib in the latter half of 2026 [3] Group 2: Market Expectations and Analyst Ratings - HC Wainwright & Co. believes the trial results have 'reset expectations' in the oral tyrosine kinase 2 (TYK2) area, indicating a strong likelihood of FDA approval for envudeucitinib, which could significantly boost the company's revenue [4] - Following the trial results, several research firms, including Wells Fargo and Morgan Stanley, have also revised their positions on Alumis Inc. by increasing their price targets [4] - As of January 12, Wall Street analysts have a consensus Strong Buy rating on the stock, with a one-year average share price target of $37.67, representing an upside of 78.62% [5] Group 3: Company Overview - Alumis Inc. is a biopharmaceutical company specializing in developing targeted therapies for immune-mediated diseases [5]

Core Insights - Morgan Stanley reported a revenue of $17.89 billion for the quarter ended December 2025, reflecting a year-over-year increase of 10.3% and a surprise of +3.3% over the Zacks Consensus Estimate of $17.32 billion [1] - The earnings per share (EPS) for the quarter was $2.68, an increase from $2.22 in the same quarter last year, although it did not meet the consensus EPS estimate of $2.41 [1] Financial Performance Metrics - Book value per common share was reported at $64.37, exceeding the average estimate of $63.87 by four analysts [4] - Return on average common equity was 16.9%, surpassing the estimated 14.6% by four analysts [4] - Total client assets in Wealth Management reached $7,381 billion, significantly higher than the average estimate of $6,832.69 billion by two analysts [4] - Total assets under management were $1,895 billion, compared to the estimated $1,823.49 billion by two analysts [4] - Net interest revenue was $2.86 billion, exceeding the average estimate of $2.53 billion and representing a year-over-year increase of +11.9% [4] - Total non-interest revenues amounted to $15.04 billion, surpassing the average estimate of $14.49 billion and reflecting a year-over-year increase of +10% [4] Wealth Management Performance - Revenues from Wealth Management - Transactional were $1.14 billion, slightly below the average estimate of $1.19 billion, but showed a year-over-year increase of +17.5% [4] - Net interest income in Wealth Management was $2.11 billion, exceeding the estimated $1.99 billion and representing a +11.8% change year-over-year [4] - Other revenues in Wealth Management were reported at $147 million, slightly above the average estimate of $141.89 million, but showed a year-over-year decline of -27.6% [4] - Asset management and related fees in Investment Management were $1.65 billion, exceeding the average estimate of $1.56 billion and reflecting a year-over-year increase of +6.1% [4] - Performance-based income and other revenues in Investment Management were $71 million, below the estimated $115.88 million, representing a year-over-year decline of -19.3% [4] - Asset management revenues in Wealth Management were reported at $5.03 billion, exceeding the average estimate of $4.81 billion and showing a year-over-year increase of +13.9% [4] Stock Performance - Shares of Morgan Stanley have returned +3.4% over the past month, outperforming the Zacks S&P 500 composite's +1.6% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Morgan Stanley (NYSE:MS) Q4 2025 Earnings call January 15, 2026 08:30 AM ET Company ParticipantsTed Pick - Chairman and CEODevin Ryan - Managing Director and Director of Financial Technology ResearchChris McGratty - Managing Director and Head of U.S. Bank ResearchNone - Company RepresentativeMike Mayo - Managing Director and Head of U.S. Large-Cap Bank ResearchErica Najarian - Managing Director and Head of Americas Financial Sector ResearchConference Call ParticipantsSteven Chubak - Managing Director and Se ...

Financial Data and Key Metrics Changes - In 2025, the company achieved record full-year revenues of $70.6 billion and fourth-quarter revenues of $17.9 billion, supported by expanding markets and increasing client demand for advice [31] - The return on tangible common equity (ROTCE) was 21.6% for the full year, with fourth-quarter ROTCE at 21.8% and earnings per share (EPS) reaching $10.21 for the full year and $2.68 for the fourth quarter [32] - The efficiency ratio improved to 68.4% for the full year, indicating disciplined execution and prioritization of investments [32] Business Line Data and Key Metrics Changes - Institutional Securities delivered record full-year revenues of $33.1 billion, including $7.9 billion in the fourth quarter, with strong growth in Investment Banking revenues of $7.6 billion for the full year [33] - Wealth Management achieved full-year revenues of $31.8 billion with margins of 29%, and net new assets of $356 billion for the year [38] - Investment Management generated total revenues of $6.5 billion, reaching a record $1.9 trillion in assets under management (AUM) [46] Market Data and Key Metrics Changes - 25% of the company's revenues came from outside the U.S., with EMEA revenues growing by 40% and Asia by 50% over the last two years [22] - The company has a strong presence in Japan and Hong Kong, with significant growth in the EU and maintained leadership in the U.K. [22] Company Strategy and Development Direction - The company is focused on executing its strategy of being an integrated firm, leveraging technology and human capital across its three business segments: Wealth, Institutional Securities, and Investment Management [15][29] - There is an emphasis on the adoption of AI tools to enhance efficiency and effectiveness across business units [15] - The company aims to compound earnings in a capital-efficient manner while maintaining a strong focus on client relationships and market share [12][29] Management's Comments on Operating Environment and Future Outlook - The management highlighted a resilient U.S. economy and a favorable macro backdrop, with expectations of continued execution at or above firm-wide goals in 2026 [5][7] - There is caution regarding geopolitical uncertainties and higher asset prices, with a focus on not overreaching despite achieving many firm-wide goals [12][29] - The management expressed confidence in the potential for growth in both the Wealth and Investment Management businesses, supported by healthy pipelines and client engagement [49] Other Important Information - The company raised its quarterly dividend to $1 per share, marking four consecutive years of dividend growth [27] - The firm bought back $4.6 billion of common stock in 2025, including $1.5 billion in the fourth quarter [49] Q&A Session Questions and Answers Question: Why no change for the targets despite strong results? - The management emphasized the importance of demonstrating the ability to compound earnings through cycles and maintaining a conservative approach to setting targets [54][56] Question: What are the drivers of margin growth in Wealth Management? - The management indicated that both scaling the business and improving efficiency through technology and fee-based revenues are key drivers for margin growth [61][63] Question: How does the company view the trading business and its future? - The management acknowledged the trading business's current strong performance but noted the potential for volatility in the future, emphasizing the importance of managing risks [100][102] Question: What is the outlook for wallet expansion in institutional trading? - The management expressed optimism about the growth of the wallet, projecting a 5%-10% annual increase, supported by ongoing share gains from established firms [91]

Financial Data and Key Metrics Changes - In 2025, Morgan Stanley achieved record full-year revenues of $70.6 billion and fourth-quarter revenues of $17.9 billion, with a return on tangible common equity (ROTCE) of 21.6% and earnings per share (EPS) of $10.21 for the full year [17][18] - The efficiency ratio improved to 68.4% for the full year, indicating disciplined execution and prioritization of investments [17][55] - The firm generated record EPS of $2.68 for the fourth quarter, with a ROTCE of 21.8% [17][18] Business Line Data and Key Metrics Changes - Institutional Securities delivered record full-year revenues of $33.1 billion, including $7.9 billion in the fourth quarter, with investment banking revenues reaching $7.6 billion for the full year [18][19] - Wealth Management achieved full-year revenues of $31.8 billion and reported margins of 29%, with net new assets of $356 billion and fee-based flows of $160 billion for the year [20][24] - Investment Management generated total revenues of $6.5 billion, with assets under management (AUM) scaling to a record $1.9 trillion [24][25] Market Data and Key Metrics Changes - 25% of revenues came from outside the U.S., with EMEA growing revenues by 40% and Asia by 50% over the last two years [12] - The firm reported a strong macro backdrop, with improving corporate confidence and open capital markets positioning it well for future growth [18][19] Company Strategy and Development Direction - Morgan Stanley's strategy focuses on executing from a position of strength, with multi-year investments in core businesses and the integration of technology [4][8] - The firm aims to compound earnings in a capital-efficient way and is investing in AI tools to enhance efficiency and effectiveness across business units [8][56] - The company is committed to maintaining high standards for acquisitions, focusing on organic growth and client relationships [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the firm's ability to navigate macroeconomic and geopolitical uncertainties while continuing to execute on firm-wide goals [3][4] - The outlook for 2026 includes expectations for healthy investment banking pipelines and continued growth in wealth management and institutional securities [19][27] - Management emphasized the importance of compounding earnings through the cycle and maintaining a conservative approach to setting targets [30][39] Other Important Information - The firm raised its quarterly dividend to $1 per share, marking four consecutive years of dividend growth [15] - Morgan Stanley's CET1 ratio ended the year at 15%, with over 300 basis points of excess capital [14][26] Q&A Session Summary Question: Why no change for the targets despite strong results? - Management indicated that the decision to maintain targets reflects a desire to demonstrate the firm's ability to operate at high levels consistently and achieve higher lows during challenging periods [29][30] Question: What are the drivers of margin growth in wealth management? - Management highlighted the importance of scaling fee-based revenues and improving efficiency through technology investments as key drivers for margin expansion [32][34] Question: How does the firm view the trajectory of the wallet in institutional trading? - Management expressed optimism about the wallet's growth potential, citing ongoing share gains and favorable market conditions as supportive factors [42][47]

Shares of Morgan Stanley ( MS ) have been an excellent performer over the past year, gaining about 45%. Rising market levels have supported ongoing growth in its asset and wealth management businesses, which generateOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know!Analyst’s Disclosure: ...

Wall Street's biggest banks just delivered some of their strongest trading quarters ever, yet investors remain hesitant, leaving bank stocks struggling to gain traction despite headline-beating results.Goldman Smashes Trading RecordsGoldman Sachs Group Inc. (NYSE:GS) blew past expectations for equities trading revenue, setting an all-time Wall Street record.The bank reported $4.31 billion in equities trading revenue for the final quarter of last year. That marked the highest such figure ever posted by any b ...

Morgan Stanley capped an exceptional 2025 with a fourth-quarter earnings beat that showcased the power of its diversified business model. The investment bank reported net revenues of $17.9 billion and... ...

Financial Performance - Net revenues for the fourth quarter of 2025 were $17,890 million, a decrease of 2% from $18,224 million in the previous quarter, but an increase of 10% from $16,223 million in the same quarter last year [3]. - Institutional Securities segment reported net revenues of $7,931 million, down 7% from $8,523 million quarter-over-quarter, but up 9% year-over-year from $7,267 million [3]. - Wealth Management segment achieved net revenues of $8,429 million, reflecting a 2% increase from $8,234 million in the previous quarter and a 13% increase from $7,478 million year-over-year [3]. - Investment Management segment reported net revenues of $1,720 million, a 4% increase from $1,651 million quarter-over-quarter and a 5% increase from $1,643 million year-over-year [3]. - Consolidated net revenues for Q4 2025 were $17,890 million, down 2% from Q3 2025 but up 10% compared to the same quarter last year [7]. - The firm’s total net revenues for the twelve months ended December 31, 2025, were $70,645 million, representing a 14% increase from $61,761 million for the same period last year [3]. Income and Earnings - Income before provision for income taxes was $5,760 million, down 4% from $6,028 million quarter-over-quarter, but up 17% from $4,906 million year-over-year [3]. - Net income applicable to Morgan Stanley was $4,397 million, a decrease of 5% from $4,610 million in the previous quarter, but an increase of 18% from $3,714 million year-over-year [3]. - Earnings applicable to Morgan Stanley common shareholders were $4,250 million, down 4% from $4,450 million quarter-over-quarter, and up 19% from $3,564 million year-over-year [3]. - Net income applicable to Morgan Stanley for the quarter was $2,049 million, down 17% from $2,468 million in the previous quarter but up 30% year-over-year from $1,891 million [11]. Expenses - Non-interest expenses totaled $12,112 million, a slight decrease of 1% from $12,196 million in the previous quarter, but an increase of 10% from $11,202 million year-over-year [3]. - Compensation and benefits as a percentage of net revenues in Wealth Management was 52%, down from 53% in the previous quarter and year [13]. - Compensation expense for Q4 2025 was $7.06 billion, up from $6.29 billion in Q4 2024, indicating a year-over-year increase of 12.3% [33]. - Total non-interest expenses for Q4 2025 were $12.112 billion, a slight decrease from $12.196 billion in Q3 2025 and an increase from $11.202 billion in Q4 2024 [35]. Assets and Capital - Total assets increased to $1,420,270 million, representing a 4% increase from Q3 2025 and a 17% increase year-over-year [7]. - Average common equity for the firm was $100.9 billion, a 2% increase from Q3 2025 and a 7% increase year-over-year [9]. - Common Equity Tier 1 capital ratio stood at 15.0%, down from 15.1% in Q3 2025 [9]. - Total assets under management or supervision reached $1,895 billion, a 5% increase from $1,807 billion in the previous quarter [21]. Wealth Management - Total client assets in Wealth Management grew to $7,381 billion, reflecting a 5% increase from $7,054 billion in the previous quarter and a 19% increase year-over-year from $6,194 billion [17]. - Net new assets in Wealth Management were $122.3 billion, a 51% increase from $81.0 billion in the previous quarter and a 116% increase year-over-year from $56.5 billion [17]. - The pre-tax margin for Wealth Management improved to 31%, compared to 30% in the previous quarter and 27% a year ago [13]. - The return on average common equity for Wealth Management was 27%, up from 25% in the previous quarter and 20% year-over-year [13]. Credit Losses and Loans - Provision for credit losses was $18 million, a significant decrease of 84% from $115 million in the previous quarter, and an increase of 32% from $264 million year-over-year [3]. - The allowance for credit losses (ACL) for total loans was $1,132 million, representing 0.4% of gross loans [25]. - Total loans increased by 4% to $107.7 billion from $103.4 billion in the previous quarter [23]. - Consolidated loans and lending commitments totaled $499.3 billion, a 4% increase from $479.4 billion in the previous quarter [23]. Employee Metrics - Worldwide employees increased to 82,992, a 1% increase from the previous quarter and a 3% increase year-over-year [6]. - The number of stock plan participants declined slightly in the second half of 2025 due to the disposition of the Firm's EMEA stock plan business [42].