Goldman Sachs stock slides on Q1 earnings beat

Yahoo Finance Live anchors Rachelle Akuffo and Brad Smith discuss the decline in stock for Goldman Sachs following first-quarter earnings.

Video transcript

RACHELLE AKUFFO: Happy tax day. Not happy for everyone, but shifting gears to focus on these bank earnings that are really piling in this morning. We have Goldman Sachs out with its results. The bank beat on earnings, but missed on revenue as it takes a hit from the sale of consumer loans and weaker than expected bond trading results.

Investors were closely watching to see if the March banking crisis hit Goldman in particular as the bank gets most of its revenue from trading and investment banking. So, an interesting picture here because we did see fixed income trading revenue in the quarter for 17% to 3.93 billion, really not capitalizing on this rush we saw into fixed income that a lot of these other big banks enjoyed.

And also, taking a look at what happened with Marcus. Goldman said it posted a $470 million loss on the partial sale of its $4 billion Marcus loans portfolio, and then move the remainder of the loans to held for sale. But that really did also contribute to the revenue miss as well.

Retail banking, which has been a common story, but plays a much smaller role in Goldman, but like Bank of America, those deposits also down. Those were about down about 3.1% quarter-over-quarter and year-over-year. So, lots to watch here. And as you mentioned-- as we mentioned at the top of the show, CEO David Solomon saying, "the events of the first quarter acted as another real life stress test demonstrating the resilience of Goldman Sachs and the nation's largest financial institutions."

But as we're seeing, it's really playing out differently depending on how diversified you are. As we mentioned, with Goldman Sachs really focused on some of these Wall Street activities, not benefiting as much as these big banks, Brad.

BRAD SMITH: Yeah, this is a huge time for Goldman Sachs in two different measures. And one of those measures, of course, what we were seeing within the broader banking turmoil, trying to re-instill confidence, of course, in the broader system. Even though they had to acknowledge, and this was the first line of this report, as I was mentioning earlier, the first line of this report coming from CEO and Chairman David Solomon saying, "the events of the first quarter acted as another real life stress test, demonstrating the resilience of Goldman Sachs and the nation's largest financial institutions."

So, really gives a nod to the different type of position or the benefits that a large bank has given its stature, given its scale versus some of the regional banks, given the run on deposits that we had seen and that real life stress test, as they called it. But then on the consumer side, you also think about where technological innovation is continuing to move forward, especially among some of the largest banks and the financial services sector trying to become more relevant in day in, day out purchases.

And we saw that just yesterday as well within the recent announcements from Goldman Sachs and Apple furthering their relationships to try and make sure that on Apple's front, they get a little bit closer to the everyday transactions that we make. I mean, I know the second that I tap, I'm like, you know, I'm not paying, Apple is paying. That's what goes through my mind. I forget that it's coming out of my account sometimes because it's so simple.

But I think now for many consumers trying to figure out, OK, what does this mean for some technological firms who are now merging their own ambitions with the larger bank or Wealth Management institutions, I think these types of relationships could only become further known at this point in time and really elevated. And that's just what we saw between a big name in banking in Goldman Sachs, and Wealth Management and Goldman Sachs, and of course, the tech behemoth that Apple is. And so, that certainly one of the more trending stories on the day recently.