Where Does Schwab Make Its Money Now That It Owns TD Ameritrade?
Some investors were understandably concerned when in November of 2019 -- shortly before the COVID-19 pandemic took hold of the world -- Charles Schwab (NYSE: SCHW) announced it would be acquiring rival online broker TD Ameritrade. Rather than postpone or cancel that deal in the disruptive wake of the pandemic, Schwab plowed ahead, completing the acquisition in October of last year just as interest rates began to sink even deeper into uncharted territory. Given how much of Schwab's business is dependent on those rates, nobody quite knew what to expect headed into last month's fiscal Q1 report.
As it turns out, the zany stock-trading environment for the past year as well as the adverse impact of ultra-low interest rates wasn't that big of a deal. Charles Schwab generates revenue in a lot of different ways, and all of those profit centers continue to do well.
A simple picture tells the story of the company's resiliency.
Source Fool.com
