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With a market cap of $192.6 billion, Morgan Stanley (MS) is a global financial services firm specializing in investment banking, wealth management, institutional securities, and asset management. Founded in 1935 and headquartered in New York City, it operates in over 40 countries, serving corporations, governments, and individuals.
Companies valued at more than $10 billion or more are generally considered “large-cap” stocks, and Morgan Stanley fits this criterion perfectly. The firm has solidified its wealth management leadership through strategic acquisitions like E*TRADE and Smith Barney, providing a consistent revenue stream. Additionally, its expertise in capital markets, M&A advisory, and institutional trading cements its position among top-tier investment banks.
The financial service company pulled back 16% from its 52-week high of $142.03 touched on Feb. 3. Shares of MS have dropped 8.2% over the past three months, outperforming the broader Nasdaq Composite’s ($NASX) fall of 8.4% over the same time frame.
Over the past six months, shares of Morgan Stanley have surged 23.5%, outpacing NASX’s 9% increase. Also, Morgan Stanley has risen 38.5% over the past 52 weeks, compared to NASX's 11.8% return.
MS has been trading above its 200-day moving average for the past year. However, it has been trading below its 50-day moving average since mid-February.
On Jan. 16, Morgan Stanley shares surged 4% following the release of its Q4 earnings report. Morgan Stanley delivered a strong fourth-quarter performance, with revenue surging 25.8% year over year to $16.2 billion, driven by gains across key segments. Institutional Securities revenue jumped 47.1% to $7.3 billion.
Additionally, wealth management revenue climbed 12.5% to $6.1 billion, supported by client assets that reached $6.2 trillion. Investment Management grew 12.2% to $1.6 billion, reflecting solid asset management performance. Net income more than doubled to $3.7 billion, with EPS at $2.22, significantly beating the prior year’s $1.30. The firm’s largest M&A pipeline in seven years signals continued momentum into 2025.
However, the stock’s rival, The Goldman Sachs Group, Inc. (GS), has seen a 44.1% rise over the past 52 weeks, outpacing MS' performances in both periods.
Analysts are cautiously optimistic about the stock's prospects. The stock has a consensus rating of “Moderate Buy” from the 23 analysts covering it, and the mean price target of $141.05 represents a premium of 18.2% from the current market prices,
