Wealth stocks fell after AI tax-tool news; Morgan Stanley and others say buy the dip

Several wealth management stocks dropped after Altruist unveiled an AI-powered tax-planning tool, and Wall Street analysts cited in the article — including Morgan Stanley and Deutsche Bank — called the pullback overdone and framed AI as a potential opportunity.

Several wealth management stocks moved lower after Altruist announced an AI-powered tax planning tool on its Hazel platform. The article reports sharp declines at multiple firms over two trading days. Wall Street analysts quoted in the piece described the sell-off as outsized and emphasized that many brokers are already investing in AI. The analysts framed the technology as a potential productivity tool rather than an immediate existential threat to the industry. Key details: - The sell-off followed Altruist’s announcement of an AI-powered tax planning tool on its Hazel platform, as reported in the article. - The article mentions LPL Financial fell more than 8%, Charles Schwab lost 7.4%, Raymond James nearly 9% and Ameriprise about 6% during the initial move. - Morgan Stanley analyst Michael Cyprys called the decline "outsized and overdone" and said brokers could benefit from AI-driven productivity gains. - Deutsche Bank’s Brian Bedell and TD Cowen’s Bill Katz described the pullback as an overreaction and noted AI integration efforts at firms like Schwab; Bedell is cited as saying Schwab has over 220 AI use cases in production. - Citizens JMP analyst Devin Ryan said the introduction of AI into wealth management looks more like an evolution than a near-term mass disruption. Summary: The immediate impact was a sharp share-price pullback across several wealth managers after the Altruist announcement. Analysts quoted in the article characterized the decline as overdone and highlighted AI as a potential driver of productivity for advisors. Undetermined at this time.