Goldman Sachs' market cap has surpassed its long-term competitor Morgan Stanley for the first time since 2020.
Goldman Sachs' stock price rose 2.6% on Tuesday, increasing its market cap to $168.9 billion. According to data collected by institutions, after lagging behind its competitors for four years, Goldman Sachs has narrowly overtaken Morgan Stanley's market cap of $168.6 billion. This means that Goldman Sachs, under the leadership of David Solomon, is rapidly rising, and the market cap gap between these two Wall Street giants exceeded $20 billion at the beginning of the year.
"Goldman Sachs is one of the best risk/reward stocks in our coverage given potential upside risks to EPS and possible rating adjustments," wrote Ebrahim Poonawala, global research analyst at Bank of America, in a report on Tuesday.
Supported by strong trading revenue and interdepartmental fees in its investment banking division, Goldman Sachs' stock price has risen 31% this year, reaching a new record high. Morgan Stanley's stock price has only risen 11% in 2024, lagging behind its major peers and the market, due to poor performance in its wealth management business.