Morgan Stanley's AI Deals Drive 190.2% Return

Key Takeaways

• Morgan Stanley returned 190.2% over three years amid AI deal wins
• Anthropic's planned IPO has Morgan Stanley as lead underwriter
• Interactive Brokers launched IBKR Autonomous Trading for 75,000+ securities
• Alphabet lost over $500 billion in its largest-ever stock plunge
• Pluto Security found a cryptomining campaign on Hugging Face with 700+ downloads
• Harvey acquired AI sales platform Aida to strengthen its context layer
• OpenAI CEO Sam Altman warned companies to prioritize AI security threats
• Verisk expanded AI integrations across Amazon Quick, Microsoft Copilot, and Claude
• Mid-sized insurers turn to third-party AI to avoid costly proprietary builds
• Experts urge CIOs to plan for AI vendor shutdowns or acquisitions

Morgan Stanley stock tested after AI deal wins

Morgan Stanley has returned about 190.2% over three years and is now priced at $190.13 per share. The firm is a lead underwriter for Anthropic's planned IPO and helped finance $63 billion in AI infrastructure with Broadcom. Its model shows it can earn more on capital than it costs, but some investors worry much of the future value is already in the price.

Interactive Brokers launches AI trading tool

Interactive Brokers launched IBKR Autonomous Trading, which lets eligible clients use AI platforms to trade over 75,000 stocks, options and ETFs worldwide. The tool moves the firm from using AI just for ideas to allowing automated order execution. Analysts project revenue of $10.7 billion and earnings of $1.8 billion by 2029, but adoption speed and rate cuts remain key risks.

Charles Schwab expands AI tools for advisors

Charles Schwab is adding AI tools for registered investment advisors through products like Claude for Financial Advisors, Ester and Nevis. The company is also preparing for possible 23 hour trading in U.S. markets. Schwab, a $154.4 billion capital markets firm, aims to use AI to cut back-office work and grow higher-margin advice services.

SentinelOne stock near fair value after AI launches

SentinelOne shares are up 74.8% year to date and trade at $25.59, close to estimated fair value. New AI products like Singularity ASOC and partnerships with Lenovo, LevelBlue, N-able and Moro Hub may help growth. The company has about $1.7 billion in remaining performance obligations, but some analysts worry rivals could pressure pricing.

OpenAI CEO warns AI exposes security flaws

OpenAI CEO Sam Altman spoke at Oracle's conference in Las Vegas and warned that AI systems are uncovering security vulnerabilities at a staggering pace. Oracle announced Agentic Applications powered by Fusion Claw, including 25 AI tools for business areas like finance and customer service. The companies also expanded their partnership to integrate ChatGPT and Codex into Oracle cloud systems.

OpenAI's Sam Altman urges companies to prioritize AI security threats

OpenAI CEO Sam Altman told companies to focus on AI security risks before using AI for productivity. He said AI systems are finding many software vulnerabilities faster than expected. He spoke at the Oracle AI World event with Oracle CEO Clay Magouyrk. They agreed that new tools are needed to monitor and fix security flaws across systems. OpenAI recently used AI agents to find serious flaws in PHP, a language used by most websites.

5 high ROE stocks to watch as AI rally boosts markets

Markets rose this week due to an AI-powered rally and falling oil prices. Chip stocks led the gains after AI firm Anthropic had a successful IPO. The Federal Reserve kept interest rates unchanged. A Zacks report highlights five stocks with high return on equity and strong cash flow. These are Micron Technology, TE Connectivity, Arista Networks, VICI Properties and United Rentals.

Mid-sized insurers use third-party AI to improve investment workflows

Mid-sized insurance companies are using external AI providers to upgrade their investment workflows. They do not need to build costly proprietary AI infrastructure. Existing enterprise platforms and outside providers can deliver quick productivity gains. This approach helps insurers keep up with AI advances without large upfront costs.

IT leaders should plan for AI vendor shutdowns or acquisitions

Industry experts warn that many AI companies may fail or get acquired soon. CIOs should prepare for losing an AI vendor by planning for data access and export. Dave Shanker of STS Consulting Group says contracts should include exit terms and data return rules. Rodion Sorokin of The Capital Index adds that custom AI models and data may be lost if a vendor shuts down. Testing data export processes before signing is also recommended.

Pluto Security finds cryptomining campaign on Hugging Face

Pluto Security reported a cryptomining and backdoor campaign on Hugging Face on October 29, 2026. The campaign used 31 malicious repositories across three accounts and two platforms. There were over 700 downloads before the repositories were removed. The attack exploited a documented Transformers loading behavior with trust_remote_code=True. The report also cites CVE-2026-22807 affecting vLLM versions from 0.10.1 to 0.14.0. Users are advised to check for mining processes and secure their systems.

Verisk expands AI integrations for insurance data access

Verisk announced new AI platform integrations allowing customers to access ISO Loss Costs and PAAS content through Amazon Quick, Microsoft Copilot, and Claude. A new Verisk Benchmark connector on Claude provides property-level hail and wind history. The tools let insurance professionals query underwriting and weather data in plain language. The company aims to reduce research time while keeping existing governance controls in place.

Harvey acquires AI sales platform Aida

Harvey announced its acquisition of AI-powered sales platform Aida on Thursday. Financial details were not disclosed. Aida was founded in 2024 by Atish Das Sarma and Piyush Prahladka. The platform offers risk detection, performance reporting, note-taking, and email drafting. Aida's engineers will help Harvey build out its context layer and improve how its AI agents use legal and business information.

Alphabet loses over $500 billion in stock plunge

Alphabet Inc.'s shares fell more than 13%, wiping out over $500 billion in market value. The drop was the company's largest ever and followed disappointing search and advertising sales. Investors grew more concerned about AI threatening Google's core business. The news also raised questions about Alphabet's ability to compete in a changing market.

New York stocks fall after Alphabet earnings

New York stocks dropped as Alphabet Inc. reported quarterly earnings that sparked AI fears. Alphabet's stock fell 7.2% in after-hours trading. Concerns centered on rising AI-related costs and slowing revenue growth. Despite worries from investors, CEO Sundar Pichai said the company remains committed to investing in AI research and development.

Sources

• Can Morgan Stanley (MS) Justify Its Price After AI Deal Wins?
• Will AI Trading Launch Change Interactive Brokers' (IBKR) Narrative
• Charles Schwab (SCHW) Pushes AI For Advisors As 23 Hour Trading Nears
• SentinelOne (S) Stock May Trade Near Fair Value After AI Security Launches
• 'I'm shocked': OpenAI CEO Sam Altman warns of AI systems uncovering alarming security vulnerabilities
• Prioritise understanding AI security threats, even before productivity: OpenAI's Sam Altman to cos
• 5 Stocks With High ROE to Bet on as AI-Infused Rally Spurs Markets
• Mid-sized insurers leverage third-party AI to upgrade investment workflows
• When your AI vendor goes belly up
• Pluto Security Details Load/Mine Cryptomining Campaign on Hugging Face
• Verisk brings insurance intelligence to more AI platforms
• Harvey Inks Deal to Acquire AI Sales Platform Aida
• Google Erases a Record $500 Billion as AI Eats Into Sales
• New York Stocks Drop as Alphabet's Earnings Spark AI Fears