Charles Schwab Stock (NYSE: SCHW) News, Forecasts & Analysis — November Asset Inflows, Forge Deal, and Crypto Plans (Dec. 12, 2025)
News Summary
Charles Schwab (SCHW) reported robust November 2025 activity, including $40.4 billion in core net new assets, a 40% increase year-over-year, and $11.83 trillion in total client assets, up 15% annually. The firm also added 365,000 new brokerage accounts and maintained strong client engagement with 8.46 million daily average trades. Despite strong asset inflows, the “cash sorting” trend persisted, with transactional sweep cash down $1.3 billion in November, and bank deposit account balances falling 3% month-over-month and 13% year-over-year. CEO Rick Wurster indicated the company remains open to acquisitions, referencing the Forge Global deal, and plans to roll out spot crypto trading in the first half of 2026. S&P Global Ratings revised Schwab's outlook to positive from stable on October 31, 2025, while Wall Street analysts hold mixed but broadly constructive views on the stock, with an average one-year price target of $112.20. Q4 2025 earnings are anticipated around January 21, 2026.
Background
Charles Schwab is a leading investment services firm providing brokerage, banking, and wealth management services. Its business model has faced challenges since the 2022-2023 rate shock, as clients moved low-yield cash from sweep accounts into higher-yield alternatives, a phenomenon known as “cash sorting.” The company recently completed the acquisition of Forge Global, aiming to tap into the market for private company shares. Additionally, Schwab is preparing to launch spot crypto trading services to meet client demand and enhance platform appeal. In the current macroeconomic environment, investors remain highly sensitive to interest rates, liquidity, and earnings power.
In-Depth AI Insights
Is Charles Schwab's cash sorting trend truly 'normalizing' as the market suggests? Despite robust core net new asset figures, the continued decline in transactional sweep cash and bank deposit account balances indicates clients are still actively seeking higher-yielding alternatives. This trend is less about 'normalization' and more about clients persistently optimizing their cash allocations in the current elevated interest rate environment. This places ongoing pressure on Schwab's net interest revenue, forcing it to rely on other business growth (e.g., asset management fees, trading volumes) for offset. Is Schwab's move into crypto a defensive play or a genuine growth driver? Schwab's planned spot crypto trading rollout in 1H 2026 is both a defensive strategy to retain younger and high-net-worth clients who might gravitate towards competitors offering such services, and a potential growth driver. However, the inherent volatility, regulatory uncertainty, and potential reputational risks of the crypto market mean its contribution to earnings may be limited in the short term and will require significant compliance and risk management resources. Given President Donald Trump's administration may adopt a relatively open stance on crypto regulation, this could provide a somewhat favorable policy environment for Schwab, albeit with inherent uncertainties. What deeper investment debates are reflected in Wall Street's mixed views on Schwab? The divergence in analyst ratings for Schwab highlights a core debate regarding the path to its earnings 'normalization.' Bulls focus on its immense scale, consistent asset gathering, and client engagement, believing improved interest rate risk management will drive long-term growth. Bears, conversely, emphasize competitive pressures from ongoing cash sorting and valuation concerns as the stock approaches 52-week highs. This split reflects market uncertainty about the resilience of financial services firms' earnings models in a post-rate-hiking cycle, and a re-evaluation of the weighting of different revenue drivers (asset fees, trading fees, net interest income) amid macro uncertainty.