The price of a share in the bank fell by just over $19 the day after its chief executive spoke to an investor conference in New York.
Goldman Sachs shares dropped 4% after CEO David Solomon warned the Wall Street giant is facing a $400 million hit from the exit of a credit card venture as well as recent weakness in trading revenue.
But the megabank’s top boss also said Goldman’s vaunted trading operation is facing “a more challenging macro environment, particularly in the month of August,” adding that “that business is trending down close to 10%”“The combination of those things this quarter will likely have an approximately $400 million pre-tax impact, largely showing up in revenues,” Solomon told the Barclays forum on Monday afternoon.
The company’s stock is, however, roughly up 27% this year close to a record high, with Goldman now focusing on its flagship deal-making unit and asset and wealth management to boost growth. Wells Fargo analyst Mike Mayo wrote in a note that there was “the possibility that GS gave the bad news without giving the good news” in Solomon’s talk.
David Solomon Goldman Sachs Stocks
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