• Altruist’s new tool will help advisors to create fully personalized tax strategies for clients by reading and interpreting their 1040s, paystubs, and account statements.
• Altruist said that tax planning is governed by zero data retention agreements with Hazel’s AI model providers.
• Shares of other financial services stocks like Raymond James and Stifel Financial were also down. 

Shares of Charles Schwab (SCHW) fell more than 8% on Tuesday and was the top trending stock on Stoctwits amid wider selloff in financial services stocks. 

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The selloff came after technology platform Altruist on Tuesday launched a new AI-powered tax planning tool within its Hazel platform causing a stir among investors over the firm's advisory practice. 

At the time of writing, shares of Raymond James Financial plummeted 8% and Stifel Financial was down 5%. 

Altruist’s New Tool

The new capability will help advisors create fully personalized tax strategies for clients by reading and interpreting their 1040s, paystubs, account statements, meeting notes, emails, and custodial and customer relationship management (CRM) data, and applying deep tax logic to the analysis.

“Tax planning is one of the most powerful ways advisors can improve outcomes, but it’s also slow and mentally draining, especially in the busy tax season,” said Jason Wenk, Founder and CEO of Altruist. “Hazel’s tax planning feature flips that dynamic. It expands what a single advisor can handle, raises the bar on outcomes, and makes average advice a lot harder to justify.”

Altruist said that tax planning is governed by zero data retention agreements with Hazel’s AI model providers, meaning they are prohibited from retaining any data from Altruist or its customers. And this data is not used to train AI models.

Latest Earnings

Charles Schwab in its latest fourth quarter earnings posted a revenue of $6.34 billion, a 19% jump from the year-ago quarter. However, it missed analyst estimates of $6.39 billion. 

Its adjusted profit of $1.39 per share for the quarter saw a 38% rise from a year-ago quarter and came in line with Wall Street expectations. 

How Did Stocktwits Users React?

Retail sentiment around SCHW trended in ‘bullish’ territory amid ‘extremely high’ message volume. 

One bullish user called the stock move an ‘overreaction’.

Another user said that “close to 100% of all the selloffs caused by "AI disrupting a sector" are an exaggerated reaction and a good buying opportunity in many cases”. 

Shares in the company have risen 20.6% over the past 12 months.