Morgan Stanley (NYSE:MS) is among the stocks on Jim Cramer’s game plan as he shared his take on the market post Iran-U.S. ceasefire talks. Cramer expects a “good quarter” from the company, as he said:
Alright, now, more banks, Wednesday, Morgan Stanley, and Bank of America. I think Morgan Stanley should have a good quarter. And given that I expect a great number of IPOs in the second half of the year, this investment bank should have a fabulous 2026. Ted Pick, I bet they have their traders fired up, and they’ll be instrumental in putting up a good quarter.
Stock market data. Photo by Burak The Weekender on Pexels
Morgan Stanley (NYSE:MS) provides financial products and services, including investment banking, wealth management, and asset management, for institutions and individuals. Baron Financials ETF stated the following regarding Morgan Stanley (NYSE:MS) in its fourth quarter 2025 investor letter:
During the quarter, the Fund invested in Morgan Stanley (NYSE:MS), a leading global investment bank and wealth management firm. Morgan Stanley has successfully diversified its business beyond cyclical banking and trading fees into more recurring wealth and investment management. These businesses collectively oversee $9.3 trillion in client assets that generate predictable, capital light revenue that grows from inflows and market appreciation. Morgan Stanley has a unique client acquisition model that includes financial advisors, self-directed accounts, and workplace accounts, providing multiple avenues to serve clients. In 2025, the company amassed over $350 billion in net new assets, with a 7% net inflow rate in the fourth quarter. These businesses provide a durable base of revenue and earnings for Morgan Stanley even when banking activity is slow. At the same time, Morgan Stanley remains a top three global investment bank, enabling the firm to generate considerably higher earnings during periods of strength in the capital markets.
Morgan Stanley benefits from numerous competitive advantages. It has a leading brand in banking and wealth management, long held customer relationships, and access to premier industry talent. Its unique customer acquisition model gives Morgan Stanley a strong relationship with clients earlier in their wealth lifecycle and the ability to grow with clients as they build wealth. As Morgan Stanley grows revenues, we expect continued margin expansion from operating leverage and efficiencies from the broader usage of AI. The company has significant excess capital, which could be used to invest in the business or returned to shareholders, especially as capital requirements ease under a more business-friendly administration… (Click here to read the full text)
While we acknowledge the risk and potential of MS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MS and that has 10,000% upside potential, check out our report about this cheapest AI stock.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years
Disclosure: None. Follow Insider Monkey on Google News.
Hedge Fund Resource Center