Charles Schwab Raises Full-Year Net Revenue Guidance, Says Client Assets Hit $10.31 Trillion In November: Retail’s Enthusiastic
Synopsis
Core net new assets brought by new and existing clients totaled $28.8 billion, while net new assets excluding mutual fund clearing totaled $24.1 billion
Shares of financial services firm Charles Schwab Corporation (SCHW) fell over 4% on Friday after the company released its November activity report and also raised its full-year net revenue guidance.
The firm said its total client assets rose 26% year-over-year (YoY) to $10.31 trillion as of month-end November and rose 5% compared to Oct. 2024. Core net new assets brought by new and existing clients totaled $28.8 billion, while net new assets excluding mutual fund clearing totaled $24.1 billion.
November daily average trades rose by 20% month-over-month to 6.6 million, primarily driven by equity volumes. Transactional sweep cash ended November on a flat note at $393.7 billion.
The firm reported a 25% YoY rise in new brokerage accounts to 357,000 for the month.
For the full-year 2024, the firm raised its net revenue guidance. It now expects the metric to grow by 3.0% to 3.5% versus the previous year, driven by increased investor engagement, post-election equity market strength, and the continued stabilization of client transactional sweep cash balances.
“This represents an improvement from the 2.0% to 3.0% revenue growth range previously communicated at the Fall Business Update in October,” it said.
Following the announcement, retail sentiment on Stocktwits jumped into the ‘bullish’ territory (58/100) from ‘neutral’ a day ago, accompanied by ‘high’ message volume.
Earlier this week, Jefferies reportedly raised its price target on the stock to $94 from $84 while keeping a ‘Buy’ rating. After meeting the company's new CFO, the analyst noted that fundamental trends "continue to be positive.”
Notably, shares of the firm have gained over 15% since the beginning of the year.
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