So our stock price is being hammered because investors / Wall Street do not understand our business model (same reason it cratered in the recent small bank crisis) and investors are speculating. Meanwhile, other firms are not suffering similarly. So we should all go out and buy more with our excess cash. What am I missing (other than a strong message of EC accountability to address corporate performance and employee morale)?
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the business model isn't working - that was evident last year when interest rates rose. ALM/treasurer made some poor investments that are still haunting them. They should shed the banks and get back to what Schwab did when it was founded - they got greedy with the inflow of deposits all these years
Many of the people who own a large amount of Schwab stock due to being ant the company for a significant length of time, are in my opinion, not good people. So I’m personally happy to see the price of the stock fall.
“I do not like the stock”
- RoaringKitty, probably
The stock is a dog. Single digit growth; and that is only IF they had a high morale, engaged and invested workforce (they don’t, anymore). And they pay a shyte dividend.
People have a lot of options in today’s world, and Schwabasaurus Rex has lost its schtick. People have figured that out. As the “boomer money” goes away, so will this old dinosaur.
The have you been sleeping responder…did you read Walt’s email this AM? If your simplistic thinking was sufficient why would our CEO be compelled to email a stock performance explanation to the entire company? Good lord, critical thinking on this site is near 0.
Have you been sleeping? The company spent 3 years integrating an expensive acquisition, and there is no real gain for the stockholders to be seen.
Stock prices reflect the market's view of the future performance of the company.
What matters is flow of money. It doesn’t matter if a company is financially or fundamentally sound nearly as much as it matters inflows vs outflows of $$$ with the stock. We have neg EPS companies outperforming out stock over previous years. Not sure what people don’t understand about this. I’m not saying this is or isn’t a good buying opportunity, just saying financials/fundamentals don’t mean sh-t if more money is moving out of the stock than into.