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Feb 11, 2026
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LONG
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Stock fell ~7% on fears a startup (Altruist) launched an AI tax tool. Schwab has 46 million clients and massive data scale. They are already implementing AI (e.g., Wealth.com partnership). AI will make their advisors more efficient, not obsolete. The selloff is an overreaction. LONG SCHW (CEO explicitly bullish and owns stock). Fee compression if AI tools democratize complex tax strategies. |
Bloomberg Markets
Bloomberg Surveillance 02/11/2026...
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Feb 11, 2026
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WATCH
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"Using Wealth.com... they were able to create a two-page visual summary [of a 400-page trust]... AI tools like tax planning... is something that is going to make advisors more effective." Wurster confirms that Schwab is *buying/partnering* with AI solutions (specifically naming Wealth.com) rather than building everything from scratch. This suggests the "AI Winners" in Fintech may not be standalone disruptors, but B2B software providers selling into the massive distribution channels of legacy firms like Schwab. WATCH. Look for public B2B Fintech/AI software companies that serve enterprise wealth managers rather than direct-to-consumer robo-advisors. Incumbents may eventually build these tools in-house, squeezing vendors. |
Bloomberg Markets
AI Will Help Wealth Managers, Not Hurt Them, ...
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Feb 11, 2026
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LONG
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"For us AI is a real accelerant... Our cost to serve an account has come down 21%. On an inflation-adjusted basis that is 41%." The market is currently pricing AI as a deflationary threat (fee compression/disruption) to wealth managers. However, the data shows AI is actually driving operating leverage (lower costs per account). If incumbents with massive distribution (46M clients) can integrate AI tools (like Wealth.com) to improve advisor efficiency rather than being replaced by them, the sell-off is a mispricing of margin expansion potential. LONG. The "AI threat" is actually an "efficiency unlock" for dominant incumbents. If AI agents successfully commoditize complex tax/estate planning faster than Schwab can integrate them, fee pressure will materialize. |
Bloomberg Markets
AI Will Help Wealth Managers, Not Hurt Them, ...
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