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Goldman (GS) Plans to Turn Simon into a Neutral Platform

The Goldman Sachs Group Inc. GS is planning to sell part of Simon — its online platform for retail bond investors. The app was introduced two years back and is currently valued at $75 million, per The Wall Street Journal.

The platform has greatly helped the retail brokers who invest on behalf of their clients. It helps them know about the structured investments online, saving time that would otherwise been wasted by discussing about the products over telephone.

However, Simon has not been in demand by the rivals of Goldman. JPMorgan Chase & Co. JPM has partnered with International Business Machines Corp. IBM to bring forth another platform similar to Simon. Further, Barclays PLC BCS and Credit Suisse Group AG CS use their own brokerage houses to sell structured notes.

Per the report, some of the rivals refrain from paying fees to Goldman while others feel the need of a neutral platform which is not being headed by a single bank.

Thus, the company has set out not only to find investors but also to provide brokers with more options to choose from. However, there is no surety to whether a deal would be made.

Lately, the company’s has been undertaking several initiatives to become technically advanced. These include its online personal loan providing platform Marcus, secure messaging service across the Wall Street through Symphony and the upcoming robo-advising service. Such strategic moves are likely to bolster Goldman’s performance.

Shares of Goldman have gained 55.1% over the last one year, marginally underperforming the Zacks categorized Financial - Investment Bank industry’s rally of 56.5%.

Currently, the bank carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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