Shares of Wells Fargo & Co (NYSE: WFC) are up 8.0% on Friday even after the financial services company reported a 48% hit to its Q2 profit and revenue that came in shy of Wall Street estimates.
Wells Fargo Q2 earnings snapshot
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According to Wells Fargo, the hit to revenue was primarily related to divestitures and a slowdown in mortgage banking. The stock is down more than 35% for the year.
Stephanie Link reacts to Wells Fargo Q2 results
Reacting to the earnings report on CNBC’s “Squawk Box”, Hightower’s Stephanie Link said the banks are in a much better position than they were in the Great Financial Crisis.
WFC is getting hit not only from markets but also mortgages. But they did a good job in expenses down 3.0%, loans up 8.0%. It’s a restructuring story. They’re focusing on cost cuts. Asset cap is an overhang, as soon as that’s lifted, it’ll be a nice catalyst.
Wells Fargo is trading at 0.9 times book, which, as per Link, is very attractive to own. Wall Street currently rates the stock at “overweight” with upside to $52.62 that translates to an over 25% increase in the stock price from here.
The post Wells Fargo Q2 profit down 48%: Pro explains why stock is ‘very attractive’ appeared first on Invezz.
Source : https://invezz.com/news/2022/07/15/wells-fargo-shares-up-after-q2-results/