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Jim Cramer Reveals Big Reason Why Morgan Stanley (MS) Will Do Well
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The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational. We recently published Jim Cramer Said Allbirds Management Are "Jokers" & Discussed These 18 Stocks. Morgan Stanley (NYSE:MS) is one of the stocks discussed by Jim Cramer. Investment bank Morgan Stanley (NYSE:MS)’s stock is up by a strong 73% over the past year and by 5% year-to-date. The year-to-date gains have come on the back of a 16% surge in April. In January, RBC Capital discussed Morgan Stanley (NYSE:MS)’s shares as it hiked the price target to $207 from $185 and kept a Sector Perform rating on the shares. RBC commented that the investment bank’s diversified business model enabled it to post strong earnings results for the fourth quarter of 2025. More recently, Cramer has started to point towards the impact that a strong IPO market can have on Morgan Stanley (NYSE:MS) as he commented during the episode: “There’s a fabulous piece out there, UBS, upgrading Hold to Buy, Morgan Stanley. And they’re talking about best in class IPO. Their gonna have some very sexy IPOs. They’re also talking about tremendous growth in wealth management. They’re also talking about. . .a huge amount of M&A, I think David may agree with me. When this war is over, you’re going to see a level of M&A that may be radical as people realize, all clear. . .but I think the companies are saying, you know what, we’re getting a once in a lifetime opportunity to get, let’s call our banker, let’s call Morgan Stanley and let’s buy our biggest competitor and let’s you know, get it so that we can raise price. Cause it’s about time. I mean, let’s get scale. . .” Baron Financials ETF discussed Morgan Stanley (NYSE:MS) in its fourth quarter 2025 investor letter: “During the quarter, the Fund invested in Morgan Stanley (NYSE:MS), a leading global investment bank and wealth management firm. Morgan Stanley has successfully diversified its business beyond cyclical banking and trading fees into more recurring wealth and investment management. These businesses collectively oversee $9.3 trillion in client assets that generate predictable, capital light revenue that grows from inflows and market appreciation. Morgan Stanley has a unique client acquisition model that includes financial advisors, self-directed accounts, and workplace accounts, providing multiple avenues to serve clients. In 2025, the company amassed over $350 billion in net new assets, with a 7% net inflow rate in the fourth quarter. These businesses provide a durable base of revenue and earnings for Morgan Stanley even when banking activity is slow. At the same time, Morgan Stanley remains a top three global investment bank, enabling the firm to generate considerably higher earnings during periods of strength in the capital markets.” While we acknowledge the potential of MS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. Disclosure: None. Follow Insider Monkey on Google News.
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