Citigroup Soars 1.17% on Tech M&A Hire

Citigroup's stock price surged to its highest level since March 2025, with an intraday gain of 1.17%.

The strategy of buying C shares after they reached a recent high and holding for 1 week showed poor performance over the past 5 years. The annualized return was -4.18%, significantly underperforming the market. This indicates that relying on recent highs and short-term holding periods may not be an effective strategy for long-term gains..

Citigroup has made a strategic move by hiring Drago Rajkovic as the co-head of M&A from JPMorgan Chase. This decision is part of Citigroup's broader strategy to strengthen its position in the tech M&A sector, an area traditionally dominated by JPMorgan. Rajkovic's extensive experience in structuring complex cross-border tech transactions, combined with Citigroup's global presence, could potentially increase the bank's market share in investment banking and tech M&A advisory revenues.

This strategic hire aligns with Citigroup's 2025 goals of increasing its Return on Tangible Common Equity and doubling M&A advisory fees. The move also capitalizes on geopolitical shifts and internal changes at JPMorgan, positioning Citigroup to capture a larger share of the market. This high-reward, high-risk strategy could significantly impact Citigroup's market position and valuation if executed successfully.