JPMorgan Chase Market Cap Plunge Matches Kotak Mahindra Bank’s Total Worth

JPMorgan Chase, the largest bank in the United States by revenue and market capitalization, witnessed a staggering $36 billion decline in its market capitalization following disappointing guidance for 2024. The bank’s shares plummeted by 6.5% on Friday, marking the most significant single-day drop since June 11, 2020.

The disappointing Net Interest Income (NII) guidance for 2024 left investors unimpressed, leading to the sharp decline in share prices. Despite analysts and consensus estimates anticipating an upward revision in NII forecast by $2 billion to $3 billion, JPMorgan Chase opted to maintain it at $90 billion.

The 6.5% decline in share prices translated to a massive $36 billion reduction in the bank’s overall market capitalization. With Friday’s close, JPMorgan Chase’s market cap stood at $525 billion, down from the $561 billion recorded on Thursday.

To put this loss into perspective, the $36 billion decline is roughly equivalent to ₹3 lakh crore. This amount is nearly equivalent to the entire market capitalization of Kotak Mahindra Bank Ltd., one of India’s leading private lenders, which stood at ₹3.6 lakh crore at Friday’s close. Additionally, it matches the market capitalization of prominent stocks like Tata Motors, valued at ₹3.38 lakh crore.

The significant market cap plunge underscores the impact of disappointing financial guidance on investor sentiment, highlighting the importance of accurate forecasts and management communication in maintaining market confidence.

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