JPMorgan Stock Drops Despite Earnings Beat Amid Profit Decline and Apple Deal Costs
JPMorgan Chase shares fell 4.2% despite reporting adjusted earnings of $5.23 per share, surpassing analyst estimates of $4.86. Revenue reached $46.77 billion, exceeding expectations of $46.25 billion. The decline was attributed to a 7% year-over-year profit drop, weaker investment banking fees, and a $2.2 billion credit reserve for the Apple credit card portfolio acquisition, which cost 60 cents per share.
CEO Jamie Dimon criticized the Justice Department's subpoena of Fed Chair Jerome Powell, warning of potential risks to monetary policy independence. The market reaction highlights investor concerns over profitability headwinds and regulatory pressures, even as the bank outperforms top-line expectations.