1 Reason Bank of America Is Struggling

By Matt Koppenheffer and David Hanson – May 4, 2013 at 4:40PM

NYSE: BAC

Bank of America

Market Cap

$302B

Today's Change

(-1.54%) -$0.59

Current Price

$37.73

Price as of April 25, 2024, 10:00 a.m. ET

Here's the real reason the market reacted so badly to Bank of America's first quarter.

After a blistering rise in 2012, Bank of America's (BAC -1.54%) stock price has lagged the market in 2013 and took a beating after reporting disappointing first-quarter results.

Investors are beginning to voice concerns over the bank's ability to grow revenue in the long term. However, despite current weakness, the bank may be well positioned to deploy its stronger balance sheet in the future.

In this video, Motley Fool banking analyst Matt Koppenheffer tells investors that taking a short-term view of the bank's books may be small-"f" foolish.

David Hanson has no position in any stocks mentioned. Matt Koppenheffer and The Motley Fool own shares of Bank of America. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.