No. of Recommendations: 6
Wealth management and tax planning companies fell on Tuesday after privately held financial software provider Altruist Corp. launched an AI tool that creates tax strategies for clients, generating concerns for other companies.
Among the top decliners were LPL Financial Holdings (LPLA) -9.6%, The Charles Schwab Corp. (SCHW) -8.7%, Raymond James Financial (RJF) -8.6%, Stifel Financial (SF) -4.9%, and Piper Sandler Companies (PIPR) -4.1%.
“The selloff appears tied to broader concerns about AI disrupting the financial advice and wealth management model,” said Bloomberg Intelligence analyst Neil Sipes.
These declines are “likely centering on concerns around efficiencies being competed away, fee compression long-term, and potential market share shifts,” he added.
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