Goldman Sachs Intrinsic Stock Value – Goldman Sachs Abandons Plans to Launch Credit Card Brand, Scales Back Consumer Banking Ambitions.

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Solomon’s ambition was to create a successful financial services platform that offered personal loans, mortgages, credit cards, auto loans, and insurance. Though he was certain that the move into the consumer banking space would be profitable, Goldman Sachs ($NYSE:GS) has since decided to abandon their plans to launch a credit card entirely. According to an anonymous source familiar with the matter, Goldman Sachs has decided to shutter Marcus’s digital-only banking plans and scale back its ambitions to entering the consumer banking space. This news was reported by CNBC on Wednesday and has since created a stir within the financial services industry.

Though Solomon had high hopes for the Marcus brand and its ability to capture market share in the consumer banking arena, it appears that Goldman Sachs has chosen to focus on their traditional banking activities rather than pursue digital retail banking. This decision is sure to disappoint many of those who had been rooting for the Marcus brand to branch out into new territory, but it is evident that the bank is prioritizing their core operations over investing resources in other ventures.

Market Price

On Wednesday, GOLDMAN SACHS stock opened at $368.7 and closed at $374.3, up by 0.7% from the last closing price of 371.8, indicating that the news of the company abandoning its plans to launch a credit card brand and scaling back consumer banking ambitions has been received positively by the market. The announcement is significant as it marks a shift in strategy for GOLDMAN SACHS, who had set their sights on becoming a major player in consumer banking. However, the company now appears to be refocusing their efforts on their core business in investment banking and asset management. This decision will likely have positive implications for the company’s bottom line in the long-term, despite some short-term losses due to the reallocation of resources. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Goldman Sachs. More…

Cash Flow Snapshot

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Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Goldman Sachs. More…

Key Ratios Snapshot

Some of the financial key ratios for Goldman Sachs are shown below. More…

Analysis – Goldman Sachs Intrinsic Stock Value

At GoodWhale, we have conducted an analysis of Goldman Sachs‘ wellbeing. Using our proprietary Valuation Line, we have calculated the fair value of a Goldman Sachs share to be around $306.0. At present, Goldman Sachs stock is traded at $374.3 – this is an overvaluation of 22.3%. We believe that this discrepancy will not last for long and that it may be a good opportunity for investors to seek attractive returns. While we have identified the market opportunity, investors must conduct their own independent due diligence before investing. More…

Peers

JPMorgan Chase & Co, Morgan Stanley, Citigroup Inc are some of its major competitors.

– JPMorgan Chase & Co ($NYSE:JPM)

JPMorgan Chase & Co is an American multinational investment bank and financial services holding company headquartered in New York City. The company was formed in 2000 when Chase Manhattan Corporation merged with JP Morgan & Company. The company operates in four segments: Consumer & Community Banking, Corporate & Investment Banking, Commercial Banking, and Asset & Wealth Management. JPMorgan Chase is the largest bank in the United States by assets and the sixth-largest bank in the world by assets.

– Morgan Stanley ($NYSE:MS)

Morgan Stanley is an American multinational investment bank and financial services company headquartered in New York City. The company operates in 42 countries and has more than 55,000 employees. The company’s market capitalization is $139.2 billion as of May 2022, and its return on equity is 9.95%. Morgan Stanley is a global leader in providing financial and investment services to a wide range of clients, including corporations, governments, institutions, and individuals. The company’s businesses include investment banking, institutional securities, wealth management, and investment management.

– Citigroup Inc ($NYSE:C)

Citigroup Inc is a global financial services company with a market cap of 88.82 billion as of 2022. The company provides consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management services. Citigroup operates in more than 100 countries and has over 200 million customer accounts.

Summary

Goldman Sachs has recently announced that it will be abandoning its plans to launch a credit card brand and scaling back on other consumer banking ambitions. Investment analysts have pointed to this move as a sensible cost-cutting measure and suggest that Goldman Sachs may be looking to refocus its efforts on areas where it can more reliably yield profits. The move has, in general, been well-received by the market and investors are optimistic that Goldman Sachs can make strategic changes to maximize shareholder value while still meeting the needs of its customers.