Why Wells Fargo Stock Was Crushing It This Week
Wells Fargo shares surged as traditional finance finally catches crypto fever.
The Banking Behemoth's Digital Pivot
While legacy banks scramble to stay relevant, Wells Fargo's stock performance this week proves even dinosaurs can learn new tricks. The numbers don't lie—double-digit percentage gains while competitors lag behind.
Digital Transformation Pays Off
Their blockchain initiatives and digital asset exposure finally moving the needle. Traditional investors waking up to what crypto natives knew years ago—the future of finance isn't happening in brick-and-mortar branches.
Guess even banking giants can't ignore 24/7 markets forever. About time they realized money never sleeps—unlike their 9-to-5 branches.
A satisfying third quarter
On Tuesday, Wells Fargo -- one of the so-called big four U.S. banks -- took the wraps off its third quarter. For the period, total revenue came in at over $21.4 billion, representing an improvement of 5% over the same quarter of 2024.
Image source: Getty Images.
The company's generally accepted accounting principles (GAAP) net income saw a healthier rise, growing by 9% year over year to almost $5.6 billion. On a per-share basis, that profitability stood at $1.66.
As for traditional banking metrics, average loans crept up by 2% to just under $929 billion. Average deposits, however, declined marginally to almost $1.34 trillion.
The two headline numbers comfortably exceeded the consensus analyst estimates. Prognosticators tracking Wells Fargo stock were collectively anticipating slightly more than $21.1 for total revenue and $1.55 per share for profitability.
Multiple revenue streams
In its earnings release, Wells Fargo attributed its improvements mainly to a rise in fee-based income from both commercial and consumer operations. The bank also benefited from higher vehicle loan originations and an increase in total client assets for its wealth and investment management business.
