Why JPMorgan Chase stock is down today 6

JPMorgan Chase Bank, N.A. (New York Stock Exchange: JPM)Shares of Koon, the largest bank in the U.S. by revenue and market capitalization, fell sharply Friday, dropping 5.8% as of 11:05 a.m. ET, despite the bank announcing a sharp beat in both revenue and earnings for the first quarter of fiscal year 2024.

Going into the quarter, analysts were expecting JPMorgan to report earnings of $3.82 per share on revenue of $38.5 billion. But then the bank reported earnings of $4.63 per share (adjusted for one-time items, net income was $4.44) on revenue of $41.9 billion - an earnings beat by any measure.

JPMorgan Chase Fourth Quarter Highlights

Chief Executive Officer Jamie Dimon called JPMorgan's business performance "strong," noting that the difference between adjusted net income and adjusted net income came from a $750 million "special assessment" from the Federal Deposit Insurance Corporation (FDIC) " to help JPMorgan resist future losses.

Revenues were up 9% year-on-year and (net) earnings were up 8% year-on-year.The only bad news is that bank depositors are beginning to resent the extraordinarily low interest rates that JPMorgan Chase (still) pays on deposits, and are shifting funds out of JPMorgan Chase's savings accounts and into higher-yielding investments. In the long run, this will be a threat to JPMorgan's profits, as JPMorgan may have to raise the interest rates it pays in order to win back deposits.

Expenses were also up slightly - 131 TP3T YoY - but Dai Bunny investors were assured that the bank's credit costs and net interest income (down 41 TP3T YoY) were on the path to "normalization."

Is JPMorgan Chase stock worth buying?

Looking ahead, Damon emphasized the risks posed by high inflation, the possibility of "quantitative tightening" by the Fed, and multiple geopolitical risks. Overall, however, he described the market as "favorable" and said that JPMorgan remained a "pillar of strength". True to his word, JPMorgan continues to buy more of its own stock - $2 billion in the first quarter.

With a P/E of 12x, a dividend yield of 2.4%, and an estimated annualized earnings growth rate of just 4% over the next five years, JPMorgan stock may not be the cheapest bank in the world. But it does look like a pillar to me.

Should you invest $1,000 in JP Morgan now?

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JPMorgan Chase is the advertising name partner of The Ascent, a company of The Motley Fool. Rich Smith has no position in any of the above stocks.The Motley Fool has a position in JPMorgan Chase and recommends JPMorgan Chase.The Motley Fool has a disclosure policy.

Why JPMorgan Chase Stock Is Down Today 6%, originally appeared in The Motley Fool.