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News  ›  Benzinga

Why Are Bank of America Shares Trading Lower On Wednesday?

Benzinga Logo Benzinga By Lekha Gupta
Why Are Bank of America Shares Trading Lower On Wednesday?

Bank of America shares declined 5% on Wednesday despite beating earnings expectations with net income of $7.6 billion and EPS of 98 cents (vs. 96 cents consensus). Revenue increased 7% YoY to $28.532 billion, also beating estimates. The bank guided for 5-7% net interest income growth in 2026. Goldman Sachs maintained a Buy rating with a $64 price target, citing strong core PPNR and ROTCE performance, though analysts seek clarity on NII drivers and capital return plans.

Insights
GOOGL   positive

Diversified technology portfolio, strategic quantum computing research through DeepMind, potential for vertical integration in AI ecosystem


BAC   negative

Despite beating earnings and revenue estimates with strong financial metrics (net income $7.6B, EPS 98 cents, 7% revenue growth), shares traded down 5% on the day. The decline suggests market disappointment with forward guidance or concerns about sustainability of recent performance improvements, particularly regarding net interest income outlook and capital return plans.