What is Hazel and why did it hit LPLA stock?

Hazel is Altruist’s AI-driven tax-planning tool. It promises faster planning outputs, which raises fears of lower advice fees across the industry. That sparked a broker stocks selloff. LPLA fell 8.3% as investors priced in margin risk for independent advisors if routine tax tasks become cheaper and planning speed becomes a commodity.

Which broker stocks moved the most on the news?

LPLA closed down 8.3%, Raymond James fell 8.8%, and Charles Schwab dropped 7.4%. Morgan Stanley eased less, helped by a more diversified revenue mix. The common thread is concern that AI-driven automation can compress planning fees, reset client expectations, and reduce the value of paid, routine tax workflows.

Is the threat from AI to advice fees immediate or long term?

Some impact can be quick if clients start expecting faster plans at lower cost. The deeper effect is long term, as tools expand and advisor models adapt. Firms with strong brands, scale technology, and advisor-led planning should manage the shift better than peers that rely on manual, routine workflows.

What should investors watch into earnings after Hazel’s launch?

Focus on advisory fee rates, net new assets, client attrition, and technology spending. Also track adoption of planning tools and any pricing changes. Watch guidance from LPLA, SCHW, RJF, and MS. Commentary on AI features, advisor productivity, and client satisfaction will signal whether margin pressure is temporary or structural.

Global Market Insights

LPLA Stock Today: February 11 — Altruist’s Hazel AI Tool Triggers 8% Slide

ByDanny Kontos February 11, 2026February 11, 2026

The Altruist AI tax tool, Hazel, jolted US broker-dealers today. Investors priced in fee pressure from automated tax planning, sending LPLA down 8.3%, Charles Schwab (SCHW) down 7.4%, and Raymond James (RJF) down 8.8%. The shock also reached UK wealth names, hinting at a wider reset for advice platforms. Early read: AI could trim planning time and compress margins. US coverage: CNBC. UK read-through: The Guardian.