• In July 2025, E*TRADE from Morgan Stanley launched Power E*TRADE Pro, a desktop platform for active traders, offering multi-monitor customization and advanced charting tools, coinciding with robust retail engagement on the platform.
• The launch highlights Morgan Stanley's focus on expanding its digital wealth management capabilities, underscored by a reported 26% year-over-year increase in self-directed trading activity as of June 30, 2025.
• We'll now examine how E*TRADE's latest platform launch and strong retail engagement may influence Morgan Stanley's investment narrative.

Morgan Stanley Investment Narrative Recap

To be a Morgan Stanley shareholder, you need to believe in its ability to grow fee-based wealth management despite ongoing shifts toward passive investing and digital disruption. The Power E*TRADE Pro platform launch is a step forward in technology and retail engagement, but it does not appear to materially change the most important short-term catalyst, recurring revenue growth, or the primary risk, which remains margin pressure from competitors and changing client behaviors.

Among recent announcements, the increase in self-directed trading activity following the E*TRADE platform launch stands out as most relevant. It supports Morgan Stanley's wealth management catalyst by showing that tech investment may help defend market share against fintech and non-traditional rivals, though the competitive threat from these players remains close at hand.

However, investors should also be aware that, despite these digital advances, the risk of margin compression from fee pressure and passive product migration is still...

Morgan Stanley's narrative projects $75.9 billion revenue and $17.2 billion earnings by 2028. This requires 5.0% yearly revenue growth and a $3.1 billion earnings increase from $14.1 billion.

Exploring Other Perspectives

Five Simply Wall St Community members estimate Morgan Stanley’s fair value between US$102.53 and US$142.47. Their wide range reflects uncertainty around digital investments’ ability to offset industry-wide margin pressures and evolving client trends, prompting you to consider several alternative viewpoints.

Build Your Own Morgan Stanley Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Morgan Stanley research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Morgan Stanley research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Morgan Stanley's overall financial health at a glance.

Contemplating Other Strategies?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.