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Nevertheless, Schwab’s stock has been under pressure since February, as investors worry that new AI tools could disrupt traditional wealth management. The stock fell from a high of about $107 to around $94 in one week and recently traded near $90, down about 16% from that peak. Still, Wurster pushed back on the idea that Schwab should copy firms built around frequent trading. Indeed, he argues that it is misleading to treat gambling-like products as asset classes that are on the same level as stocks, bonds, and commodities.
Instead, Schwab is focusing on lending, advisory services, workplace offerings, and AI tools that can make financial guidance easier to access. Interestingly, Schwab plans to launch an AI model later this year that will offer personalized portfolio updates and financial education. That could also help Schwab reach younger investors, which is important because its retail client base has an average age of 49, while new customers have an average age of 39.
Is SCHW Stock a Good Buy?
Turning to Wall Street, analysts have a Hold consensus rating on SCHW stock based on 15 Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average SCHW price target of $118.21 per share implies 31.1% upside potential.Disclaimer & DisclosureReport an Issue
