PLTR Dual Directional Trigger Jump Securities: key terms & risks
Rhea-AI Filing Summary
Morgan Stanley Finance LLC is marketing PLTR Dual Directional Trigger Jump Securities due 3 Aug 2027. The structured notes reference Palantir Technologies Inc. (PLTR) Class A shares and are fully guaranteed by Morgan Stanley. Each $1,000 security offers a fixed Upside Payment of $640–$660 (64 %–66 % of principal), delivered at maturity provided PLTR’s price on the 29 Jul 2027 observation date is at, above, or up to 40 % below its 29 Jul 2025 initial level. The notes also provide 100 % absolute return participation for declines between 0 % and –40 %, but principal is fully at risk below the 60 % downside threshold; a –60 % move would return $400, and a –100 % move $0.
Key terms include: estimated value $954.30 (±$35); CUSIP 61778NES6; not exchange-listed; secondary liquidity uncertain. The issuer highlights numerous risks: no coupon, capped appreciation, credit exposure to Morgan Stanley, model-dependent valuation, limited anti-dilution protection, and uncertain U.S. tax treatment. The product supplement and amended preliminary pricing supplement (link provided) contain full historical underlier data and risk factors.
Investors should weigh the defined but limited upside, the 60 % loss buffer, and the possibility of total loss against Morgan Stanley’s credit profile and market, liquidity, and tax uncertainties before subscribing at the 29 Jul 2025 pricing date.
Positive
- 60 % downside threshold provides a substantial buffer before principal is at risk.
- Fixed upside payment of 64 %–66 % delivers enhanced return even if PLTR is unchanged or moderately lower at maturity.
Negative
- No principal protection; investors lose dollar-for-dollar below the 60 % threshold, up to total loss.
- Cap on appreciation limits gains to $1,640 regardless of PLTR performance above initial level.
- Credit exposure to Morgan Stanley; any widening of spreads can depress secondary prices.
- Notes are not exchange-listed, leading to potentially thin and issuer-controlled liquidity.
Insights
TL;DR – Routine PLTR-linked structured note; capped upside, 60 % buffer, full credit & liquidity risk make it neutral overall.
The offering follows Morgan Stanley’s standard dual-directional design. Investors get an attractive headline return (≈64–66 %) for flat-to-modestly negative PLTR performance and 1:1 positive payoff down to –40 %, but the cap removes further upside. Economic value ($954.30) is 4.6 % below issue price, typical for retail notes and underscores placement fees and hedging costs. Because the securities are not listed, exit liquidity will rely on the issuer’s bid, likely at a discount, especially if credit spreads widen. The 60 % threshold is generous relative to PLTR’s historic volatility, yet the binary loss beyond that point is severe. For Morgan Stanley, issuance is immaterial; for retail investors, suitability hinges on risk appetite and view that PLTR will stay within ±40 % over two years. Overall impact: neutral.
TL;DR – Note exposes holders to Morgan Stanley credit risk and PLTR tail risk; no material impact to MS.
The securities are obligations of MSFL, guaranteed by Morgan Stanley. Should Morgan Stanley’s credit profile deteriorate, note values could compress irrespective of PLTR’s performance. The bank benefits from cost-effective funding—issue price exceeds model value by ≈$46—while transferring market risk via hedging desks. Investors face concentration in a single tech equity plus illiquidity. There are no novel structural protections, and the tax treatment remains uncertain. Given routine size and structure, the instrument does not alter Morgan Stanley’s risk or earnings outlook; hence the disclosure is considered non-impactful from a corporate credit perspective.
Free Writing Prospectus to Amendment No. 1 dated July 8, 2025 relating to
Preliminary Pricing Supplement No. 9,151
Registration Statement Nos. 333-275587; 333-275587-01
Dated June 27, 2025; Filed pursuant to Rule 433
Morgan Stanley
PLTR Dual Directional Trigger Jump Securities due August 3, 2027
This document provides a summary of the terms of the securities. Investors must carefully review the accompanying amended preliminary pricing supplement referenced below, product supplement and prospectus, and the “Risk Considerations” on the following page, prior to making an investment decision.
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Terms |
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Issuer: |
Morgan Stanley Finance LLC |
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Guarantor: |
Morgan Stanley |
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Underlier: |
Palantir Technologies Inc. class A common stock (PLTR) |
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Upside payment: |
$640 to $660 per security (64% to 66% of the stated principal amount) |
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Absolute return participation rate: |
100% |
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Downside threshold level: |
60% of the initial level |
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Pricing date: |
July 29, 2025 |
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Observation date: |
July 29, 2027 |
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Maturity date: |
August 3, 2027 |
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CUSIP: |
61778NES6 |
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Estimated value: |
$954.30 per security, or within $35.00 of that estimate |
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Amended preliminary pricing supplement: |
https://www.sec.gov/Archives/edgar/data/895421/000183988225037597/ms9151_424b2-20463.htm |
1All payments are subject to our credit risk
Hypothetical Payment at Maturity1
The payoff diagram and table below illustrate the payment at maturity for a range of hypothetical performances of the underlier over the term of the securities.
|
% Change in Closing Level of the Underlier |
Payment at Maturity per Security |
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+100.00% |
$1,640.00 |
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+80.00% |
$1,640.00 |
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+60.00% |
$1,640.00 |
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+40.00% |
$1,640.00 |
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+20.00% |
$1,640.00 |
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0.00% |
$1,640.00 |
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-10.00% |
$1,100.00 |
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-20.00% |
$1,200.00 |
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-40.00% |
$1,400.00 |
|
-41.00% |
$590.00 |
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-60.00% |
$400.00 |
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-80.00% |
$200.00 |
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-100.00% |
$0.00 |
The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-584-6837.
Underlier(s)
For more information about the underlier(s), including historical performance information, see the accompanying amended preliminary pricing supplement.
Risk Considerations
The risks set forth below are discussed in more detail in the “Risk Factors” section in the accompanying amended preliminary pricing supplement. Please review those risk factors carefully prior to making an investment decision.
Risks Relating to an Investment in the Securities
●The securities do not guarantee the return of any principal and do not pay interest.
●Any positive return on the securities that is based on the depreciation of the underlier is effectively capped.
●The appreciation potential of the securities is fixed and limited.
●The amount payable on the securities is not linked to the value of the underlier at any time other than the observation date.
●The market price of the securities may be influenced by many unpredictable factors.
●The securities are subject to our credit risk, and any actual or anticipated changes to our credit ratings or credit spreads may adversely affect the market value of the securities.
●As a finance subsidiary, MSFL has no independent operations and will have no independent assets.
●The rate we are willing to pay for securities of this type, maturity and issuance size is likely to be lower than the rate implied by our secondary market credit spreads and advantageous to us. Both the lower rate and the inclusion of costs associated with issuing, selling, structuring and hedging the securities in the original issue price reduce the economic terms of the securities, cause the estimated value of the securities to be less than the original issue price and will adversely affect secondary market prices.
●The estimated value of the securities is determined by reference to our pricing and valuation models, which may differ from those of other dealers and is not a maximum or minimum secondary market price.
●The securities will not be listed on any securities exchange and secondary trading may be limited.
●As discussed in more detail in the accompanying product supplement, investing in the securities is not equivalent to investing in the underlier(s).
●The U.S. federal income tax consequences of an investment in the securities are uncertain.
Risks Relating to the Underlier(s)
●Because your return on the securities will depend upon the performance of the underlier(s), the securities are subject to the following risk(s), as discussed in more detail in the accompanying product supplement.
oWe have no affiliation with any underlying stock issuer.
oWe may engage in business with or involving any underlying stock issuer without regard to your interests.
oThe anti-dilution adjustments the calculation agent is required to make do not cover every corporate event that could affect an underlying stock.
Risks Relating to Conflicts of Interest
●The calculation agent, which is a subsidiary of Morgan Stanley and an affiliate of MSFL, will make determinations with respect to the securities.
●Hedging and trading activity by our affiliates could potentially adversely affect the value of the securities.
Tax Considerations
You should review carefully the discussion in the accompanying amended preliminary pricing supplement under the caption “Additional Information About the Securities–United States federal income tax considerations” concerning the U.S. federal income tax consequences of an investment in the securities, and you should consult your tax adviser.
FAQ
What is the maturity date of Morgan Stanley's PLTR Dual Directional Trigger Jump Securities?
How much upside can investors in CUSIP 61778NES6 earn?
What happens if PLTR falls more than 60 % by the observation date?
Are the PLTR Trigger Jump Securities principal-protected or interest-bearing?
Will these Morgan Stanley notes trade on an exchange?
What is the estimated initial value versus the issue price?
