Stock Pulse
Wells Fargo reported Q1 2025 net income of $4.894 billion, exceeding expectations, but a 6% YoY drop in net interest income (NII) to $11.5 billion sparked investor concern and a ~4% stock price decline [1], [2]. This NII miss, a crucial revenue driver, raises concerns about loan demand and profitability [2], [5]. Despite the setback, long-term projections remain positive, with earnings estimated to reach $22.6 billion by 2028 and a consensus price target suggesting a 23.6% upside [1]. While insider selling raises some concern [9], a Piper Sandler upgrade to Overweight with a $77 price target signals positive analyst sentiment [10]. The company faces headwinds from potential economic slowdowns and ongoing trade tensions [7], but new partnerships and technology investments aim to boost future profitability [1].