Banks Ride Deal Wave: MS +5%, GS +4% 01/15/26
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Banks Ride Deal Wave: MS +5%, GS +4% 01/15/26
Key Stories:
- Shares of investment banking powerhouse Goldman Sachs, trading under GS, climbed over four percent in Thursday morning trading. This impressive move came after the firm posted fourth-quarter profits that significantly beat Wall Street’s expectations. The strong performance was largely driven by a surge in dealmaking, with Goldman topping global M&A rankings in 2025, advising on massive transactions including the $56 billion leveraged buyout of Electronic Arts and Alphabet’s $32 billion acquisition of cloud security firm Wiz. Stronger trading revenues in a volatile market also contributed to the beat, and the bank also increased its quarterly dividend. Investors will be watching if this M&A momentum continues into the new year. Read more
- Turning our attention to another Wall Street giant, Morgan Stanley, whose shares, ticker MS, added more than five percent on Thursday, also following a robust fourth-quarter earnings beat. The firm, a key player in global finance, saw its investment banking revenue advance a significant 47% in the fourth quarter, contributing to record total revenue for all of 2025. Morgan Stanley also boosted its quarterly dividend, signaling confidence. Both Goldman Sachs and Morgan Stanley are well-positioned to capitalize on a potentially rebounded IPO market, with major players like SpaceX, OpenAI, and Anthropic eyeing potential listings this year. However, Morgan Stanley CEO Ted Pick did caution about geopolitical risks and a “complicated” macroeconomic backdrop for 2026. Read more
- Moving to the manufacturing sector, shares of glass and electronic component manufacturer Corning, trading as GLW, jumped 3.8% in afternoon trading. This boost came after analysts at BofA raised their price target on the company’s shares to $110 from $95, while maintaining a coveted Buy rating. Corning, widely known for its Gorilla Glass technology used in smartphones and other devices, appears to be gaining renewed confidence from institutional analysts, suggesting a potential upside for investors in the coming period. This analyst upgrade could signal a positive outlook for the company’s product lines and overall market position. Read more
Keywords: Alphabet, BofA, Buy rating, Corning, Electronic Arts, GLW, GS, Goldman Sachs, IPO market, M&A, MS, Morgan Stanley, OpenAI, Q4 earnings, SpaceX, analyst upgrade, dividend, electronic components, geopolitical risks, glass manufacturing, investment banking, investment banking revenue, macroeconomic backdrop, price target, trading revenue