Goldman Sachs anticipates market recovery following IPO downturn

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Goldman Sachs anticipates market recovery following IPO downturn

Goldman Sachs, a leading investment bank, is hopeful for a potential market recovery following a significant downturn in the Initial Public Offering market in 2022. The firm's CEO, David Solomon, expressed this optimism during an earnings call. This comes after the company's stock price fell by 28%, a stark contrast to the record-breaking performance of 2021.

Goldman Sachs, which heavily relies on investment banking for revenue, saw its net income halved due to these market conditions. Despite this drop, the firm experienced a 26% increase in equity underwriting fees in Q3 of this year. Amidst persistent market turbulence, Solomon's optimistic stance suggests that this period of deflated stock prices may represent an ideal buying opportunity for investors.

Currently, Goldman Sachs is priced at just 0.87 times its tangible book value. Despite a 17% drop in investment banking fees this year, Solomon remains optimistic about a wider reopening of the"highly selective" capital markets.Drawing from real-time data from InvestingPro, Goldman Sachs' market capitalization stands at a formidable 113.68 billion USD, with a Price-to-Earnings ratio of 15.75. In the last twelve months up to Q3 2023, the company has seen a revenue of 44.

 

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