GOLDMAN SACHS

Analysis of Goldman Sachs share price

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Before starting to take a position on the Goldman Sachs share price, we offer you some useful information for your analyzes of this stock. In this article, you will discover precise data concerning the company's activities and sources of income, the data to follow in your fundamental analysis of the share, a presentation of Goldman Sachs' various competitors on the market and its main recent partners. This will give you all the information you need to predict the next trends in the stock's price.

Elements that can influence the price of this asset:

Analysis N°1

For example, we will monitor the development of online banking, which may represent a future investment area for this group.

Analysis N°2

The decline in the volumes of traditional banks' activities in asset management may also represent an opportunity for Goldman Sachs, which is tending to increase its own activities in this segment. It can thus gain market share thanks to this leverage.

Analysis N°3

Of course, Goldman Sachs' strategy will also be monitored with regard to its investments in emerging markets, which are currently very popular in the financial world.

Analysis N°4

Of course, account will also have to be taken of the new banking regulatory measures that could lead to a need for a capital increase for the group.

Analysis N°5

The image of the group is also important and it is still common for Goldman Sachs to be cited in cases and disputes. However, these events represent bad publicity for the group and can lead to the loss of clients.

Analysis N°6

Finally, we will of course also monitor the health of the financial markets in general, since, in times of financial or stock market crisis, companies in this sector can suffer significant losses.

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General presentation of Goldman Sachs

Let's now take a look at Goldman Sachs and its activities so that we can better understand how it generates its revenues and what its growth drivers are.

The Goldman Sachs Group is a US-based investment services firm.

In order to better understand the activities of this group, it is possible to divide them into different divisions according to the share of turnover they generate and in this way :

  • Investment services account for 40.5% of the group's turnover, including interventions in the equity, interest rate, foreign exchange and commodities markets.
  • This is followed by asset management activities, which generate 24.5% of the company's turnover.
  • The investment banking business generates 20.8% of Goldman Sachs' revenues with M&A advisory, equity and other transactions.
  • Finally, the granting of loans to individuals and companies represents 14.2% of the group's turnover.

It should be noted that Goldman Sachs is also developing a parallel activity of acquiring stakes in fast-growing technology companies.

It is also interesting to know the geographical distribution of the Goldman Sachs Group's revenues, which generates 60.6% of its turnover in America, 26.7% in Europe, Africa and the Middle East and 12.7% in Asia.

Analysis of Goldman Sachs share price
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The major competitors of Goldman Sachs

For your analysis of the Goldman Sachs share to be relevant, you must also be familiar with the company's competitors, the main ones being the following:

Credit Suisse

This Zurich-based banking group focuses on individual customers, small and medium-sized enterprises and government agencies. Its shares are listed on the Swiss market as well as on the New York market and the company currently employs more than 47,000 people worldwide.

Deutsche Bank 

This group is currently the largest banking group in Germany and the eighth largest European bank by capitalization. It is a universal bank with subsidiaries in more than 75 countries.

ING Group

This Dutch financial institution is an international bancassurance institution which was created in 1991 from the merger between the insurance company Nationale Nederlanden and the network bank NMB Postbank.

Morgan Stanley

This American bank also operates in 42 different countries and benefits from a network of more than 1,300 offices and 60,000 employees. Morgan Stanley currently manages more than $2 trillion in assets for its clients and has 600 branches in the United States, making it one of the world's largest players in wealth management.

Citigroup

Finally, the financial company Citigroup is also based in the United States. It results from the merger in 1998 of Citicorp and Travelers Group.


The major partners of Goldman Sachs

In addition to having a good knowledge of Goldman Sachs' main competitors, you must also be familiar with its main allies. We now propose you to discover some recent examples of strategic partnerships that this group has set up.

Amundi

Goldman Sachs' subsidiary Goldman Sachs Fund Solutions signed a strategic partnership with Amundi Services in 2018 in the quantitative and alternative management sector. More specifically, Amundi Services has been chosen to manage, control and supervise investment vehicles governed by Luxembourg law based on the systematic strategies of Goldman Sachs. The French group will also provide a management service as well as analysis and monitoring of the external managers present on the UCITS platform for alternative funds. The financial management of the systematic funds is also delegated to a team of Amundi Group structural products.

Amazon 

Another important partnership was signed more recently, in June 2020, with online retail giant Amazon. Thanks to this partnership, Goldman Sachs offers a new credit offer for the general public. Let us recall that the group had already collaborated in this sense with Apple for the launch of its bank card in the United States. With this new partnership with Amazon, Goldman Sachs intends to expand its presence in this segment. More specifically, this contract enables Goldman Sachs to offer loan offers to the millions of independent American sellers who use the Amazon platform to sell their stocks. These loans will thus complement the loan offers already offered by Amazon and made available to sellers through a service in partnership with Bank Of America.

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Frequently Asked Questions

Who are the private shareholders of Goldman Sachs?

The Goldman Sachs Group is currently owned 19.9% by Goldman Sachs & Co LLC, 6.96% by The Vanguard Group, 5.68% by SSgA Funds Management, 5.18% by Berkshire Hathaway, 5.03% by Goldman Sachs Group Shareholders Agreement, 3.33% by Dodge & Cox, 2.90% by Massachusetts Financial Services, 2.22% by BlackRock Fund Advisors and 2.14% by Capital Research & Management International.

What elements can help Goldman Sachs' share price rise?

Several major events can lead to a rapid rise in Goldman Sachs' share price. These include new strategic investments made by the group to increase its management portfolios, strategic partnerships or the publication of financial results that are up or above forecasts or announced objectives.

Where can I find detailed information for Goldman Sachs analysis?

Like all large listed companies, Goldman Sachs provides investors with a large amount of information about its stock. Thus, by going to the group's website, in the section reserved for investors and shareholders, you will find a wealth of useful information such as the group's results per year or half-year, major events and news, and information on dividends paid or to come.

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