More than twenty analysts have been chiseling away at Goldman Sachs’ earnings expectation, removing 94 cents from their profit expectations over the past month or so. These cuts are the largest since the grim days of 2008-2009, representing a 45% drop from last year.
The culprit?
Everything.
The IPO pipeline is all but shut down, following years of wanton depravity, wedding the monsters from the VC world and producing the stupidest looking babies the world has ever seen.
Other banks aren’t immune to the actual doldrums on the ground. Had you simply judged profit expectations by the lackadaisical trading action over the past month, you’d be coerced into believing all was well and good. As a matter of fact, I imagine this post comes as a great surprise to many of you.
“People were holding out hope that March would get better and partially save the quarter,” Glenn Schorr, an analyst at Evercore ISI, said in an interview. “That didn’t happen. There’s no saving this quarter.”
Investment banks are off to their worst start to a new year in over a decade.
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