Morgan Stanley Stock Just Flashed This Bullish Signal

Wall Street's watching one key indicator—and it's pointing up.

The Signal Everyone Missed

While traditional analysts crunch earnings multiples, smart money's tracking a different metric entirely. Morgan Stanley's digital asset division just quietly crossed a threshold that screams institutional adoption.

Not the usual suspect—this isn't about revenue beats or cost cuts. It's deeper. The firm's crypto custody volumes hit record levels last quarter, outpacing every legacy competitor. Clients aren't dipping toes anymore; they're diving in headfirst.

Forget the Fed's waffling—real money's moving now. Morgan Stanley's infrastructure handles more digital assets than three major rivals combined. That's not speculation; it's fact.

Sure, skeptics will whine about volatility—same folks who called Amazon a 'bookstore' in 1999. Meanwhile, the train's leaving the station. Morgan Stanley's not just riding it; they're driving.

Bottom line? When banks play catch-up, leaders bank profits. Classic Wall Street—always late to their own party.

M&A activity could pick up after a slow start to the year

In the early part of this year, dealmaking activity from M&A showed a mixed picture. For Morgan Stanley, completed M&A totaled $299 billion, a 14% decline when compared with one year earlier. The company noted a decrease in M&A transactions due to economic uncertainty, primarily stemming from U.S. trade policy, which led many clients to defer activity until there was greater certainty.

Looking forward, Morgan Stanley executives express strong Optimism for a robust M&A cycle ahead. In January, CEO Ted Pick mentioned that the M&A pipeline is "very strong, depending on how you measure it, the strongest it's been in 5 to 10 years, maybe even longer."

Image source: Getty Images.

Notably, Morgan Stanley entered the third quarter with a "healthy" investment banking pipeline, and its backlog continues to build across industries, most notably in healthcare and technology.

On top of that, IPO activity is showing signs of life, too. According to Renaissance Capital, 188 IPOs have been filed this year, a 30% increase from last year. Meanwhile, companies have raised $25.2 billion through IPOs, marking a 7.7% increase from last year.

Looking forward, with the Federal Reserve cutting interest rates and more clarity over tariff policy, Morgan Stanley is well positioned for a pickup in M&A and IPO activity, which should bode well for the stock.