Written off in 2023, Goldman's Solomon era delivered a 106% stock run by 2024
After the $3B consumer misstep and calls to resign, Goldman retreated to banking and asset management — and out-gained every large peer in market share.
What was changed
In 2023 David Solomon looked finished at Goldman Sachs. The bank disclosed roughly $3 billion of losses tied to its consumer-banking foray (per the New York Times), sold specialty lender Greensky to Sixth Street, laid off thousands amid the deal slowdown, and absorbed anonymous partner complaints about his hard-driving personality and DJ side hustle; key lieutenant Stephanie Cohen departed. Critics openly called for him to step down.
The 2022 reorganisation had already pulled the bank back toward its core. By July 2024, Citizens JMP analyst Devin Ryan declared the 'David Solomon era' a big success: global banking & markets had gained about 350 basis points of market share — the most among large bank peers — durable revenue streams had grown, and the stock was up about 21% year-to-date and 53% since the end of October 2023, beating the S&P 500's 17% and 33% over the same spans.
The arithmetic behind the reassessment: shares up 106% since Solomon's first day as CEO on October 1, 2018; $265 billion raised in alternatives AUM since 2019, bringing firmwide Alts AUM to about $500 billion ($456 billion as of September 30, 2023 per the firm's website); market cap around $153 billion. Ryan raised his price target to $525 from $460, expecting asset & wealth management earnings to accelerate as the alternatives platform starts earning high-margin management and incentive fees.
Why it worked
Retreating from consumer banking stopped the losses, even if the exit itself was imperfect.
Global banking & markets kept winning share through the M&A drought.
Asset & wealth management — especially alternatives — built durable, high-margin fee streams.
The market had been pricing the consumer noise rather than the underlying business momentum.
What can be applied
Retreating from a loud failure can be the turnaround: folding consumer ambitions back into the core lets the durable businesses compound in public.
Aftermath
Ryan's note lifted the price target to $525 and forecast continued GBM share gains plus a sharp AWM earnings acceleration as recently raised alternatives began earning fees; Goldman closed at $473.49 on July 9, 2024, near a record share price.