Core Viewpoint - Goldman Sachs plans to cut 3% to 5% of its staff, amounting to approximately 1,395 jobs, as part of its annual talent management process, which is larger than previous reductions [1][3] Group 1: Layoff Plans - The planned layoffs are part of Goldman Sachs' normal annual review process, which typically results in workforce reductions of 2% to 7% depending on financial outlook and market conditions [1][2] - Despite the layoffs, Goldman Sachs expects its total headcount to be higher at the end of 2024 compared to 2023 [2] Group 2: Financial Performance - Goldman Sachs experienced a decline in deal-making and exited a consumer business, leading to several rounds of workforce reductions in 2023 [3] - The bank reported a three-year high in quarterly profits in January, with year-over-year revenue gains of 33% in Global Banking & Markets, 8% in Asset & Wealth Management, and 16% in Platform Solutions [4] - The growth in revenues was attributed to higher net revenues in equity and debt underwriting, as well as intermediation and financing in the Global Banking & Markets business [5] Group 3: Market Outlook - CEO David Solomon noted a meaningful shift in CEO confidence following the U.S. election, with an increased appetite for deal-making supported by an improved regulatory environment [6] - There is a significant backlog from sponsors, which is expected to spur further activity in 2025 [6]

Core Viewpoint - Goldman Sachs has demonstrated strong performance in the financial services industry, with significant stock price appreciation and robust revenue growth, particularly in investment banking and investment management [1][2][3]. Financial Performance - In 2024, Goldman Sachs reported total revenue of $53.5 billion, a 16% increase from the previous year, following a 2% decline in 2023 [2]. - Net interest income surged by 27%, contributing to a 68% increase in net income for 2024 [3]. - The company is projected to grow its earnings per share at a compound annual rate of 12% over the next three years, surpassing its trailing 10-year average of 9% [7]. Market Position and Opportunities - Goldman Sachs ended the year as the No. 1 M&A advisor, indicating strong positioning in investment banking [2]. - The company is optimistic about future prospects, citing potential catalysts for continued activity in the financial markets [3]. - The launch of a Capital Solutions Group aims to capitalize on opportunities in private credit and private equity, enhancing the bank's ability to serve clients [6]. Valuation and Stock Performance - As of February 26, shares were trading at a price-to-earnings ratio of 15.3, which is considered historically expensive [9]. - Despite impressive five-year stock returns, expectations are high, and the current valuation may limit future returns for new investors [10][11].

Core Insights - Goldman Sachs shares have increased by 186% over the past five years, with a total return of 219% including dividends, significantly outperforming the S&P 500 [1] - The stock is currently trading 7% below its peak price, indicating ongoing positive momentum and optimism from investors regarding the company's future prospects [1] Strategic Decisions - In 2016, Goldman Sachs launched Marcus to enter the consumer banking sector, aiming to diversify revenue streams, but the initiative was ultimately unsuccessful and was dismantled [2] - The failure of Marcus may have redirected management's focus back to the company's strengths in high-end Wall Street activities, such as deal-making and serving ultra-high-net-worth clients [3] Business Focus - Goldman Sachs is expected to concentrate on its core competencies, including being a top M&A advisor, leading equities franchise, and a dominant player in fixed income, commodities, and asset management [5] Financial Performance - In 2024, Goldman Sachs reported a 16% increase in total revenue and a 68% rise in net income, marking a strong financial year [6] - The company anticipates continued positive catalysts, including an improving economic environment, potential lower interest rates, deregulation, and increased CEO confidence [7] Market Outlook - The favorable economic backdrop is expected to enhance opportunities for initial public offerings and M&A activity, providing additional revenue streams for Goldman Sachs [8] - Despite the positive outlook, the unpredictability of macroeconomic factors and regulatory developments remains a consideration [8] Valuation Considerations - Goldman Sachs is recognized as a high-quality business with strong fundamentals and leadership in various capital markets [9] - The current price-to-earnings (P/E) ratio stands at 15.3, which is historically high, having increased by 48% since February 2020, suggesting that the stock may not be a smart buying opportunity until the P/E ratio approaches 10 [10][11]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 Commission File Number: 001-14965 The Goldman Sachs Group, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) 200 West Street, New York, NY 10282 (Address of principal executive offices) (Zip Code) Delaware 13-4019460 (I.R.S. Emp ...

Goldman Sachs added its president and chief operating officer John Waldron to its board of directors a month after he was given a retention bonus, cementing his position as a potential successor to CEO David Solomon.Waldron, 55, joins Solomon, 63, as the second member of the management committee to have a seat on the board.“It does appear that firmer succession planning is underway,” said Stephen Biggar, a banking analyst at Argus Research.John Waldron has been president and chief operating officer since Oc ...

Albert Anthony is the pen name of a Croatian-American media personality on investor platforms Investing.com and Seeking Alpha, where he has grown over +1K followers since 2023 and covers markets & stocks, and as of 2025 hosting an ongoing set of articles called Financial Markets: Growing A Dividend Income Portfolio. His new book of the same name is planned for a 2025 global launch on Amazon soon. A native of the NYC area, he has also called home Austin Texas where he worked as a management & information sys ...

Donald Trump appears to have secured David Solomon’s job for the foreseeable future.The Goldman Sachs CEO has had, let’s say, a rocky relationship with the rank-and-file inside the big investment bank, and just a few months ago, looked to be on thin ice.MDs and senior executives thought he was dictatorial and could be a jerk at a company where CEOs normally stroked the egos of top brass. Junior bankers believed his back-to-work edicts and perk-containment strategies wreaked of insensitivity, and leaks were ...

Investment banks are set to thrive under President Donald Trump’s second term, according to Kingsley Jones, founder and chief investment officer at Jevons Global. Speaking to CNBC’s Martin Soong, the Australian investor expressed optimism about Wall Street’s performance, highlighting a favorable environment for financial stocks.Regulatory Changes and Trade Policies Favor BanksJones pointed to Trump’s pro-business stance, which includes loosening deal-making regulations and implementing trade tariffs that co ...

In the past year, The Goldman Sachs Group, Inc. (GS) shares  jumped 72%, outperforming the industry’s growth of 55.7% and the S&P 500 index rise of 24.3%. Further, the stock has fared better than its JPMorgan (JPM) and Morgan Stanley (MS) , which gained 56.4% and 66.2%, respectively, during the same time frame.Price Performance Image Source: Zacks Investment Research Also, the GS stock is trading just 2.2% below its 52-week high of $663.87 touched on Feb. 7, 2025.Now, let us delve deeper and analyze the fac ...

A month has gone by since the last earnings report for Goldman Sachs (GS) . Shares have added about 5.9% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Goldman due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Goldman Q4 Earnings & Revenues Beat as IB Business Rebo ...