Meta's Muse reignites AI disruption fears. Traders are targeting this brokerage stock as next casualty
Article excerpt
In this article Meta's latest consumer AI product is sending such big shockwaves through the market that it's even inflaming a long-time rivalry in the brokerage business between 55-year old investing giant Charles Schwab, and Robinhood, an icon of the post-Covid trading boom among young investors. Shares of Schwab fell 6% Tuesday, touching the lowest since early July and the stock is now down more than 8% since Meta announced Muse. Meanwhile, Robinhood's stock was higher, notching anotheryear-to-date high. In May, the company launched AI agents that can now trade and manage portfolios on behalf of users. Shares of sprawling wealth management business LPL Financial Holdings dropped 7% Tuesday, financial services firm Raymond James Financial shed 3.5 percent, and Interactive Brokers slipped 1% as the State Street Financial Select Sector SPDR ETF (XLF) lost 2% and is now down 6 percent from highs made earlier this month. Higher interest rates may not be helping. It's not the first time an AI product has jostled the group – in February, the same group of stocks dropped when tech platform Altruist said its platform `Hazel' can create tax-planning strategies for individuals and advisors. Schwab stock recovered some in the months after – LPL has not. "Schwab's an interesting animal," said Jimmy Lee, founder and CEO of The Wealth Consulting Group, a Las Vegas-based advisor that...
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Last week, Schwab Advisor Services, the company's platform for registered investment advisors, announced it is working with Anthropic to create Claude for Financial Advisors.
