Charles Schwab Corporation (The) Common Stock (SCHW) Stock Analysis — Latest Investor Quotes & Trade Calls

Pair Trade Opportunity: Long Robinhood (HOOD) & Short Schwab (SCHW)

+2.67%current return

"That could have been one of the greatest pure alpha pair trades I've ever seen. If you had put this trade on in '23, I want to be long Robin Hood, short Schwab. Holy cow, if this touches one, go the other way."

The speaker outlines an actionable pair trade based on the converging market caps of Robinhood and Charles Schwab. He notes that Schwab's market cap has compressed from as high as 22.5 times the size of Robinhood's to just 1.3 times, suggesting a potential reversion. The recommendation is to establish a long position in Robinhood (ticker HOOD) and a short position in Schwab (ticker SCHW) as the ratio normalizes further.

Charles Schwab Expands Access to Private Companies

+1.99%current return

"Charles Schwab is also a stock that you are watching. It's down today along with the broader market, but they did say today that they want to give retail investors access to private companies, given the fact that there is a growing number of firms that have been industry giants before even going public."

Charles Schwab, while experiencing a downturn along with the overall market, is aiming to democratize access to private markets. The company intends to let retail investors participate in pre-IPO investments in firms such as Stripe and OpenAI, which may offer long-term benefits by broadening investment opportunities.