NEW YORK, Feb 12, 2026, 13:28 EST — Regular session
- Shares of Charles Schwab slipped in midday trading following an AI-fueled selloff that shook brokers earlier this week
- CEO Rick Wurster insists the market is overlooking Schwab’s edge in AI
- Next catalyst: Schwab’s activity report for January is expected before the market opens on Feb. 13
Shares of The Charles Schwab Corporation slipped roughly 0.7% to $94.81 on Thursday, erasing some early gains as investors remained jittery following a steep, AI-driven selloff earlier this week.
The stock has fluctuated between about $92.84 and $96.27 during the session, highlighting ongoing volatility despite the broader markets finding some stability.
Why it matters now: Schwab and other wealth managers took a hit after a smaller competitor launched new AI tools designed to automate tax planning — a traditionally hands-on service that helps firms lock in fees and keep clients.
Schwab’s stock closed at $95.45 on Wednesday, dropping 3.83% and marking its second day of declines, according to MarketWatch data. It now trades roughly 11% below its 52-week high of $107.50, reached just the day before. Trading volume surged well past the 50-day average.
The slide began Tuesday after wealth management startup Altruist rolled out AI-powered tax planning tools, sparking fresh debate over pricing and competition among brokers and advisors. “Traders sell first and ask questions later,” said Dennis Dick, strategist at Stock Trader Network. Analysts at Citizens countered that advisers “earn the fee” through judgment and coaching, while Morningstar’s Sean Dunlop called parts of the selloff “overdone.” Reuters
Schwab CEO Rick Wurster pushed back on the AI-related sell-off Wednesday, saying he was “disappointed and surprised” by the market reaction. He called Schwab a “natural winner in the AI space” thanks to its “size, scale” and vast data resources. Wurster also drew parallels to earlier worries that “robo-advice” would put traditional advisers out of business. Advisorhub
Investors are also watching insider moves closely. Schwab co-chairman Walter W. Bettinger exercised options and offloaded 67,514 shares on Feb. 6, with a weighted average price of $104.2521, according to a recent filing.
For Schwab, the key issue is whether AI tools will serve as a fresh distribution channel for advice or simply act as another productivity enhancer that helps prevent client attrition. This distinction is crucial both for the firm’s advisor-facing operations and its retail clients, where service quality and retention are the main drivers of account growth and asset accumulation.
The downside is straightforward to outline. If AI-powered tax and planning tools catch on quickly and begin commoditizing segments of advice, fee pressure could worsen, clients might find it simpler to jump between firms, and spending could escalate as established players scramble to keep up feature-wise.
What’s next: traders are eyeing Schwab’s January monthly activity report, typically released near the 10th business day, with this one expected premarket on Feb. 13. Investors will focus on net new assets, client cash flows, and trading volumes—especially after this week’s AI-driven market moves.
