Key Stats for JPMorgan Stock
- Price Change for JPM stock: 4.66%
- $JPM Share Price as of Dec. 9: $300.51
- 52-Week High: $322.25
- $JPM Stock Price Target: $328
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What Happened?
JPMorgan (JPM) stock dropped more than 4% after Marianne Lake, head of the bank’s Consumer and Community Banking division, disclosed that expenses for 2026 would hit $105 billion.
That number came in roughly $4 billion higher than the $101 billion analysts were expecting and represents nearly 10% growth over this year’s adjusted expense level of $95.9 billion.
Lake made the comments at Goldman Sachs’ financial services conference around 12:30 pm, and JPM stock immediately started sliding. She emphasized the bank wanted to be transparent about the outlook, noting the firm had largely finished its second round of budgeting for next year.
Lake broke the expense growth down into three buckets.
- The biggest driver is volume- and growth-related expenses tied to the bank’s expansion strategies. Think performance-based compensation for advisers, product marketing as customers engage more with refreshed credit card offerings, and auto lease costs that show up as expenses due to accounting treatment.
- The second bucket includes strategic investments the bank has been making for years, like building new branches, hiring bankers and advisers, investing in AI and customer features, and refreshing products.
- The smallest piece comes from structural inflation and real estate costs.
Lake defended the spending, pointing out that these investments have predictable returns, and the bank would make as profitable an investment as possible.
Consumer banking accounts for a large share of that expense growth, but the themes apply across the entire firm.
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What the Market Is Telling Us About JPM Stock
The selloff in JPM stock suggests investors remain skeptical about the bank’s expense discipline. Analysts and shareholders have questioned the bank’s cost management in the past, and a 10% jump in expenses naturally raises eyebrows even at a growth-oriented institution like JPMorgan.
But Lake painted a picture of a healthy consumer backdrop that justifies the investment.
- Consumer cash buffers have normalized and stabilized.
- Credit metrics across asset classes look good.
- Card delinquencies of 30 days or more have improved year-over-year for the past 10 months.
The bank now expects 2025 credit card charge-offs of around 3.3%, down from an earlier estimate of 3.6%, as pandemic-related delayed charge-offs peak and roll over.
The consumer remains resilient despite elevated price levels and a weakening labor market. Spending in the fourth quarter improved both year-over-year and compared to the first three quarters of 2025.
Lake acknowledged consumers are more fragile than before, with less capacity to weather stress, but the data right now shows stability rather than deterioration.
The card business continues firing on all cylinders. The bank is on track to add roughly 10.5 million new card accounts this year, maintaining momentum from prior years.
The Chase Sapphire refresh resonated with customers, and the bank also refreshed its United and Southwest card portfolios.
Competition has responded aggressively, but JPMorgan expected that. Lake emphasized that the bank designs each card to be standalone profitable, with merchant partnerships and higher annual fees offsetting increased benefits.
Deposit growth has been slower than expected at the May Investor Day, coming in roughly flat year-over-year rather than showing low single-digit growth.
Yield-seeking behavior persisted longer than anticipated, partly because the Fed cut rates only once rather than the four times the bank expected. But JPM stock investors should note the bank still added about 2 million net new accounts this year and expects an inflection point in deposits later in 2026.
The competitive environment is heating up, and several regional banks are leaning back into growth after years of retreat.
Bank consolidation is creating larger competitors with more scale. But Lake dismissed concerns, noting competition has always been intense across traditional banks, regional players, and fintechs. She emphasized JPMorgan’s strategy hasn’t changed: consistent investment in strategic growth with strong execution.
For JPM stock to stabilize, investors will need to see the bank’s investments translate into the deposit share gains, card growth, and wealth management expansion laid out at Investor Day.
The numbers look achievable given current momentum, but a nearly $10 billion increase in expenses in a single year will keep pressure on until revenue growth proves it was worth it.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
