This banking "sweep" issue has been going on for 2 or so years now. They are still a company with $1B+ in net income per quarter. Also they are getting new customers every quarter. So this is really about if customers are being lazy and leaving the money in their accounts as case, or if they are moving it to a new investment (still within Schwab) quicker. With high rates available out there now, people are doing the smart thing and putting into safe places like the Schwab Money Market funds she points out (I have one too).
So Schwab is still very profitable, is getting new customers, and the net income is still very good (but flat). So the real question here is not if Schwab is in trouble financially, its if the stock should be priced at $64 per share (as it is now) or closer to $30 per share.
Her videos in the past have focused on explaining how to buy TBills at auction. I guess she is trying to expand her horizons a little, but the story she is telling was all over the place 2 years ago and proved to be nothing (except the stock price dropped to $45). Its still just a stock price discussion
I was very disappointed when Schwab bought TD Ameritrade
TD Ameritrade's website and trading platform were preferable to Schwab in terms of functionality, aesthetics, and ease of access to useful information. Schwab, on the other hand, is significantly inferior.
Sensationalist video to get people talking about it? BINGO, she wins...
Look, Schwab's definitely hit a rough patch. Their earnings were a letdown, and that drop in bank deposits is no joke. But to jump on the doom and gloom bandwagon?
Yeah, they're moving away from banking. Risky? Sure. But it's just as likely to pay off (assuming they nail the execution). But, Schwab's top brass needs to step up their game in explaining what's going on.
Customer loyalty - this is Schwab's ace in the hole. Their service is still top-notch, and that counts for a lot.
They're facing challenges, but is it "the end of the Schwab era"? They've got the customer base and the expertise to turn this around. They'll be fine - I wish I had their problems lol
So Schwab is still very profitable, is getting new customers, and the net income is still very good (but flat). So the real question here is not if Schwab is in trouble financially, its if the stock should be priced at $64 per share (as it is now) or closer to $30 per share.
Her videos in the past have focused on explaining how to buy TBills at auction. I guess she is trying to expand her horizons a little, but the story she is telling was all over the place 2 years ago and proved to be nothing (except the stock price dropped to $45). Its still just a stock price discussion
Look, Schwab's definitely hit a rough patch. Their earnings were a letdown, and that drop in bank deposits is no joke. But to jump on the doom and gloom bandwagon?
Yeah, they're moving away from banking. Risky? Sure. But it's just as likely to pay off (assuming they nail the execution). But, Schwab's top brass needs to step up their game in explaining what's going on.
Customer loyalty - this is Schwab's ace in the hole. Their service is still top-notch, and that counts for a lot.
They're facing challenges, but is it "the end of the Schwab era"? They've got the customer base and the expertise to turn this around. They'll be fine - I wish I had their problems lol