Urgent.News

What's breaking now, across thousands of outlets.

Finance & Markets

Goldman Sachs Is Paying Up to $2.25 Billion for a $30 Billion ETF Business. Is That Enough to Lift the Stock Back to a Record by 2028?

Alone, the acquisition of NEOS Investments probably won't drive Goldman Sachs back to all-time highs, but it is a good deal.

Abstract editorial illustration

In the ETF industry in 2026, a period marked by acquisitions and consolidation, Goldman Sachs finds itself both a buyer and a seller. The bank, a major player in the sector, is involved in two of the 11 deals recently completed. The latest acquisition, the $2.25 billion purchase of NEOS Investments, is seen as a prudent move for Goldman.

However, its impact on the bank's stock price and overall performance may not be substantial. Goldman Sachs is a behemoth in the financial industry, with a market value of nearly $270 billion. To surpass its all-time high of $1,146.65, the stock would need to rally by 30.1%, a feat that seems unlikely to be achieved by a single acquisition.

While Goldman Sachs Asset Management manages $3.3 trillion in assets, the wealth management arm contributed only $5.1 billion of the bank's $18.7 billion in third-quarter revenue. The acquisition of NEOS, which had $30 billion in assets under management, has since grown to $36.5 billion, making it one of the fastest-growing ETF issuers.

However, even this significant growth may not be enough to drive Goldman's stock back to its record highs. The company's core revenue and profit sources are investment banking and trading of various financial instruments. While the NEOS purchase may bolster NEOS's position within GSAM, it may not have a significant impact on Goldman's stock price.

Nevertheless, the acquisition is poised to benefit Goldman in the long run. NEOS's growth, driven by its specialty in covered call ETFs, positions it as a promising contributor to the broader Goldman Sachs ecosystem.

Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

Also reported by 2 other outlets

Read the original at fool.com →

More in Finance & Markets

NKATI seeks lower interest rate

KARACHI: President of the North Karachi Association of Trade and Industry (NKATI), Faisal Moez Khan, has urged the government and the State Bank of Pakistan (SBP) not to increase interest rate in the…

Northrop Grumman: 3 Key Takeaways for Long-Term Investors

Microelectronics and quantum tech could unlock commercial revenue streams beyond traditional defense contracts.

  • Northrop Grumman's backlog grew to $110 billion, driven by stealth bomber and defense programs
  • Operating income guidance for Q3 2026 higher than expected
  • Company expects sales growth of 5-7% in 2027, exploring commercial microelectronics opportunities

More from Tuesday 20 October →