Morgan Stanley (NYSE:MS) posted a blowout Q2—revenue up 27%, adjusted EPS $3.46, $5.5B net income—while wealth AUM hit $8.08T and crypto, AI, and SpaceX IPO plays highlight new growth levers as execs cite excess capital, buybacks, and bullish analyst upgrades.

Previous Week Recap

  • Adjusted EPS and Revenue Jump: Morgan Stanley Q2 2026: adjusted EPS $3.46 vs $2.13; net income ~$5.5B; revenue ~$21.3B (+27%). Investment banking revenue $2.44B; trading revenue $8.76B; dividend and buyback hike.
  • Wealth Management Net New Assets Rise: Morgan Stanley (MS) saw wealth management net new assets hit $148B Q, up 150% YoY; total wealth AUM $8.08T, self-directed $1.8T, daily average revenue trades 1.3M (+30%).
  • CEO: Excess Capital For Growth: Morgan Stanley CEO Ted Pick says the firm has substantial excess capital and extra leverage capacity, favoring organic growth while remaining open to strategic bolt‑on acquisitions.
  • Spot Crypto Trading On E*TRADE: Morgan Stanley added spot crypto trading on E*TRADE for eligible clients: BTC, ETH, SOL trades via ZeroHash with 0.50% commission; custody on ZeroHash accounts, no FDIC/SIPC coverage.
  • Bitcoin Trust, Crypto To ETPs: Morgan Stanley launched the Morgan Stanley Bitcoin Trust, plans crypto transfer features later this year, and partnered with Galaxy Digital to let wealthy clients convert held crypto into ETPs.
  • AI Compute Cycle Outlook: Morgan Stanley says AI compute cycle is early, may reach $10T. MS cites data center spend estimates: $850B this year, $1.3T next year, $1.5T year after; firm ~10–15% through cycle.
  • SpaceX IPO Lead Underwriter: Morgan Stanley (MS) was a lead underwriter on SpaceX’s record IPO, part of the syndicate for the ~$2 trillion debut, earning a share of roughly $500M in fees and handling other major equity deals.
  • Unicorn Pipeline To Wealth Clients: Morgan Stanley CFO Sharon Yeshaya says the firm connects with about 70% of the top 100 unicorns via its workplace pipeline, targeting conversion of IPO-era ties into wealth‑management clients.
  • Barclays Ups MS Rating Target: Barclays reiterated an overweight rating on Morgan Stanley (MS) and raised its price target from $230 to $262 per share, signaling a higher valuation for the stock.
  • Mayo Raises MS Estimates: Wells Fargo's Mike Mayo raised Morgan Stanley (MS) earnings estimates and price target after the bank's recent results, as part of post‑earnings revisions across major U.S. banks.

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