OpenAI IPO Delay Weighs on Morgan Stanley and Goldman Sachs Shares

Shares of Morgan Stanley and Goldman Sachs Group Inc. declined on Friday following reports that OpenAI is considering postponing its initial public offering (IPO) to next year due to volatility in technology stocks. Investors sold off the shares amid concerns that a delay in OpenAI's potential IPO could negatively impact the advisory and investment banking revenues of these banks in the technology sector. OpenAI's decision to delay its IPO is attributed to both volatility in technology stocks and uncertainty in market conditions. This has created expectations that revenues from IPO and advisory services for technology companies at major investment banks like Morgan Stanley and Goldman Sachs could decrease in the short term. Analysts note that the postponement of OpenAI's IPO could lead to downward revisions in the banks' earnings estimates for this year. However, it is also stated that if OpenAI's IPO materializes in the long term, these banks could secure significant advisory fees. Morgan Stanley and Goldman Sachs shares closed down 1.2% and 0.9%, respectively, on Friday. Selling pressure on technology stocks across the broader market also emerged as another factor contributing to the decline. This is not investment advice.