Morgan Stanley Stock Swings Higher After Impressive Earnings
Morgan Stanley stock moved into positive territory Tuesday as investors parse the investment banking firm's second-quarter earnings report.

Investors were hesitant on how to react after Morgan Stanley (MS) beat top- and bottom-line expectations for its second quarter. Shares of the banking giant were initially down more than 3% in pre-market trading but have since swung into positive territory.
In the quarter ended June 30, Morgan Stanley said its revenue was up 11.6% year-over-year to $15 billion, due in part to a 51% spike in investment banking revenue to $1.6 billion. The company also said its earnings per share (EPS) surged 46.8% from the year-ago period to $1.82.
"The biggest bright spot for MS was a clear rebound in the investment banking segment," says Brian Mulberry, client portfolio manager at Zacks Investment Management. "The return of Wall Street activity helped [the bank] post net income up 41% from a year ago showing an improving capital markets environment."

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Mulberry says this allowed Morgan Stanley to give positive forward guidance, which has been a definable trend. "Markets are more concerned about the next couple of quarters, even more than recent results," he adds.
As for those recent results, they crushed analysts' expectations. Wall Street was anticipating Q2 revenue of $14.3 billion and earnings of $1.65 per share, according to CNBC.
The financial firm also reiterated that it will increase its dividend by 8.8% in the third quarter and said that it repurchased $800 million of common stock during the quarter as part of its recently announced $20 billion share repurchase program. Dividends and stock buybacks can boost value for shareholders.
"We continue to execute on our strategy and remain well positioned to deliver growth and long-term value for our shareholders," Morgan Stanley CEO Ted Pick said in a statement.
Is Morgan Stanley stock a buy, sell or hold?
Although the financial stock is up 15% for the year to date on a total return basis (price change plus dividends), Wall Street is sitting on the sidelines.
Of the 23 analysts tracked by S&P Global Market Intelligence, four rate it a Strong Buy, three call it a Buy and 16 have it at Hold. This works out to a consensus recommendation of a Hold. Meanwhile, the average analyst target price for MS stock is $100.54, representing a discount to current levels.
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Honeywell Stock Is at the Bottom Of the Dow After Split News
Honeywell is the worst Dow Jones stock Thursday as the industrial conglomerate's weak outlook offsets news that it is splitting into three separate companies.
By Joey Solitro Published
-
Roblox Stock Plunges After Bookings, Users Fall Short of Expectations
Roblox stock is down Thursday after the gaming company came up short on key metrics for its fourth quarter. Here's what you need to know.
By Joey Solitro Published
-
Honeywell Stock Is at the Bottom Of the Dow After Split News
Honeywell is the worst Dow Jones stock Thursday as the industrial conglomerate's weak outlook offsets news that it is splitting into three separate companies.
By Joey Solitro Published
-
Roblox Stock Plunges After Bookings, Users Fall Short of Expectations
Roblox stock is down Thursday after the gaming company came up short on key metrics for its fourth quarter. Here's what you need to know.
By Joey Solitro Published
-
Eli Lilly Stock Rises After Profit, Outlook Top Expectations
Eli Lilly stock is higher Thursday after the pharma giant beat fourth-quarter profit expectations and issued strong 2025 guidance. Here's what you need to know.
By Joey Solitro Published
-
Qualcomm Stock Drops After Its Earnings Beat. Here's Why
Qualcomm stock is lower Thursday even after the chipmaker reported strong earnings and gave an encouraging outlook. This is what investors need to know.
By Joey Solitro Published
-
The Best ROI? Investing in Yourself This Year
If personal growth is something you invest in only after taking care of all other priorities, it's time to turn that mindset on its head. Here's how to start.
By Frank J. Legan Published
-
The Four Worst Mistakes to Make When Selling Your Business
From ignoring potential buyers to failing to consider what you'll do once you've stopped working, here are the key mistakes to avoid when selling a business.
By Evan T. Beach, CFP®, AWMA® Published
-
Stock Market Today: Stocks Waver as Big Tech Slumps on Spending Concerns
Markets seesawed amid worries over massive costs for artificial intelligence and mixed economic news.
By Dan Burrows Published
-
Is Disney Stock Still a Buy After Earnings?
Walt Disney stock is down Wednesday after the entertainment and media company beat fiscal 2025 first-quarter expectations. Here's what you need to know.
By Joey Solitro Published