Posted 4/12/2024, 12:36:08 PM
Morgan Stanley Reshapes Business Model Towards Higher-Margin Divisions, Adopts AI to Boost Efficiency
- Morgan Stanley leaning into asset management and wealth advisory, higher margins allow for predictable revenues
- Using AI to optimize costs and efficiency, especially in wealth management division
- Recent layoffs signal strategic workforce reshaping to align with tech-driven model
- Q1 earnings estimate - EPS of $1.65 (down 5% YoY), revenue of $14.39B (down 1% YoY)
- Valuation premium justified by growth trajectory and strategic initiatives like AI adoption