Wells Fargo's Market Cap has declined by more than 25% since Scharf was hired. At this rate, WF will be where Credit Suisse is now, in a few more years.
9/2019 - $215.34 Bn
Now - $143.26
https://companiesmarketcap.com/wells-fargo/marketcap/
6 replies (most recent on top)
Nor do I, not sure that I ever had much confidence in them to bring with. My gut feeling last February was overwhelming and I was fortunate to unload a bunch of WFC near $60. But for whatever reason, I held about 10% of it, probably for nostalgic or loyalty reasons or to hear a tough-love growth strategy that ultimately has never come to be.
Now I'm thinking the Credit Suisse buyout will calm sectors for a bit and if the layoff is close to what we've built up here, investors will respond and reward WFC in the market. And I'll get all the way out around $43, maybe even $45?
I don't have any confidence that current leadership can grow the bank even after the cap is lifted. All we've been hearing about the last 5 years or so is what businesses WF will be shutting down. Where's this mythical growth coming from exactly? What group?
You can't deny some of the stock price is based on broader market cycles and other bad press about SVB, Signature, FRB, etc. recently caused the entire sector to lag. However there's no doubt this executive team is basically letting Jesus take the wheel in terms of when, or if, the asset cap will ever be lifted. We've all seen nothing but constant layoffs, atrocious processes (see any thread about RCSA or Scrum) across the bank, and offshoring/outsourcing instead of investing in technology/innovation and attracting the most competent folks to run the stagecoach. Overall would give the current C suite a D-.
Now compare Rev and NI. Not great in general but not even close to CS
does anyone remember the movie "Barbarians at the gate" prescient!
If we (Wells Fargo) had long term pay for performance the "executtives" would need to pay to work here.