Business

Netflix Beats Expectations With 34% Growth in Ad-Supported Subscribers
Business

Netflix Beats Expectations With 34% Growth in Ad-Supported Subscribers

Netflix reported its second-quarter earnings on Thursday, demonstrating its dominance in the streaming industry with a significant increase in global subscribers and significant growth in its ad-supported subscription model. The streaming giant saw a 34% increase in ad-supported subscriptions during this period compared to the same quarter last year. Advertising has become a crucial revenue stream for media companies looking to improve, or even achieve, profitability in streaming. Netflix shares have benefited recently from efforts to attract subscribers to its most affordable ad-supported tier, along with moves to limit password sharing. Here's a breakdown of Netflix's performance for the quarter ended June 30, versus Wall Street forecasts: Earning per share: $4.88 vs. $4.74 forecast by...
Trump Signals Support for Powell to Continue as Fed Chairman if Elected in November
Business

Trump Signals Support for Powell to Continue as Fed Chairman if Elected in November

In an interview with Bloomberg Businessweek, Republican presidential candidate and former U.S. President Donald Trump said he would allow Federal Reserve Chairman Jerome Powell to complete his term if he won the upcoming November election. “I would let him do it, especially if I thought he was doing the right thing,” Trump said. President Joe Biden reappointed Powell to a second four-year term as head of the Federal Reserve in May 2022. Powell, who is also Fed chairman, will remain in that role until January 31, 2028. The statement represents a significant shift for Trump, who previously clashed with Powell during his presidency. Powell, who began his term as Fed chairman in February 2018, has often been criticized by Trump for his approach to interest rate policy. In 2019, Trump openly c...
Mid-Day Market Action: CrowdStrike, Plug Power, Comerica and More
Business

Mid-Day Market Action: CrowdStrike, Plug Power, Comerica and More

Several stocks have seen significant mid-day changes in the market today. Among them are CrowdStrike, Plug Power, and Comerica. Here's a closer look at the major players making headlines. Crowd Strike (CRWD) CrowdStrike has seen a substantial increase in its stock price, driven by an upbeat earnings report that beat Wall Street expectations. The cybersecurity company reported stronger-than-expected revenue growth and issued positive guidance for the coming quarters. Investors responded favorably to the company’s solid performance and upbeat outlook, sending its shares up more than 10% at midday. Plug power supply (PLUG) Plug Power shares fell sharply after reporting their quarterly earnings. The hydrogen fuel cell company reported a wider-than-expected loss, disappointing i...
United Airlines Posts Strong Q2, But Gloomy Outlook Clouds Horizon
Business

United Airlines Posts Strong Q2, But Gloomy Outlook Clouds Horizon

Chicago – United Airlines reported a solid second quarter, driven by rising demand for international travel. However, the carrier’s less-than-stellar third-quarter outlook cast a shadow over its otherwise strong performance. The airline's Q2 earnings beat analysts' expectations, fueled by a 23% increase in profits from a year earlier. The growth was attributed primarily to a resurgence in international travel, a trend that has been a boon to the industry since the pandemic. Despite solid quarterly results, United’s third-quarter forecast fell short of Wall Street projections. The disappointment was largely attributed to overcapacity issues across the industry, which put downward pressure on fares. To counter these challenges, United has focused on expanding its premium offerings and optim...
Royal Caribbean Focuses on Shorter Cruises and Immersive Experiences
Business

Royal Caribbean Focuses on Shorter Cruises and Immersive Experiences

Royal Caribbean Cruises is charting a new course to capture the evolving preferences of vacationers. As competition for leisure dollars intensifies, the cruise line is focusing on shorter itineraries packed with diverse activities and unique experiences. The company’s CEO, Jason Liberty, believes shorter cruises better align with the vacation plans of younger travelers, who make up more than half of the cruise line’s clientele. To cater to this demographic, Royal Caribbean has introduced Utopia of the Seas, a massive ship boasting a wide array of amenities, including multiple pools, dining and entertainment options. Despite concerns about a potential economic downturn, Royal Caribbean remains optimistic about the cruise industry’s outlook. The company reported strong passenger spending an...
Stocks That Moved Biggest After Hours: Five Below, Interactive Brokers, JB Hunt, and More
Business

Stocks That Moved Biggest After Hours: Five Below, Interactive Brokers, JB Hunt, and More

Key points Retail and transportation stocks shine: Shares of Five Below and JB Hunt rose after the close of trading, reflecting positive developments in the retail and transportation sectors, respectively. Interactive Brokers faces headwinds: Interactive Brokers' stock price fell after the stock market closed, likely due to investor concerns following the release of mixed financial results. Spirit Airlines continues its upward trajectory: Shares of Spirit Airlines maintained their bullish momentum in after-hours trading, demonstrating continued investor optimism. Details Five below (FIVE): Shares of the teen-focused retailer gained 2.07% after the close, likely helped by positive investor sentiment following solid retail sales data. JB Hunt Transportation Servic...
Goldman Sachs in the spotlight: Q2 results
Business

Goldman Sachs in the spotlight: Q2 results

Goldman Sachs is set to report its second-quarter results on Monday, sparking excitement on Wall Street. With the financial sector recovering after a slow 2023, analysts are eager to see how the investment giant will fare. Goldman Sachs Market Forecast Earnings: Analysts polled by LSEG expect earnings per share of $8.34. Income: LSEG estimates revenue will reach $12.46 billion. Trading revenue: StreetAccount expects fixed income revenue of $2.96 billion and equity revenue of $3.17 billion. Banking Investment: StreetAccount forecasts investment banking revenue to reach $1.80 billion. Goldman Sachs: A heavy dependence on volatile markets Goldman Sachs relies heavily on investment banking and trading to generate revenue compared to its major U.S. banking peers. This makes the firm particul...
Cooling prices pave the way for possible rate cuts
Business

Cooling prices pave the way for possible rate cuts

The Federal Reserve’s path to lower interest rates gained clarity after a key inflation report Thursday. The consumer price index (CPI), a gauge of consumer goods and services, fell 0.1% in June from May, marking the first monthly decline in more than four years. The welcome news brings the annual inflation rate to 3%, near a three-year low. Creating momentum for policy change June data reinforces the case for the Fed to ease borrowing costs later this year. Stock markets reacted positively, with futures rising while Treasury yields fell. Analysts now believe a September rate cut is a strong possibility, barring a significant change in economic data. Broader signs of easing price pressures In addition to the headline number, the report offered some encouraging details. A significant decli...
Citigroup Beats Profit, Revenue Estimates, Buoyed by Wall Street Boom
Business

Citigroup Beats Profit, Revenue Estimates, Buoyed by Wall Street Boom

Citigroup defied analysts' expectations on Friday, reporting a strong second quarter, fueled by a surge in Wall Street activity. The strong performance comes as the bank grapples with ongoing regulatory concerns. Profit and revenue forecasts Citigroup beat analysts' estimates for both profit and revenue. Earnings per share reached $1.52, beating expectations of $1.39. Total revenue rose to $20.14 billion, beating expectations of $20.07 billion. Breakdown of figures The bank's net income jumped 10% year over year to $3.22 billion, or $1.52 a share. Equity trading revenues rose a significant 37%, driven by strong derivatives and growing hedge fund balances. The segment brought in $1.5 billion, beating analysts' estimates of about $300 million. Fixed income revenues, however, fell 3% to $3.6...
JPMorgan Beats Q2 Expectations, Driven by Investment Banking Growth
Business

JPMorgan Beats Q2 Expectations, Driven by Investment Banking Growth

JPMorgan Chase beat analysts' estimates for both profit and revenue in the second quarter, fueled by a surge in investment banking business. Here's a breakdown of the key results: Earnings: $4.26 per adjusted share, beating analysts' consensus of $4.19. Income: $50.99 billion, beating the estimate of $49.87 billion. Annual growth: Net income jumped 25% to $18.15 billion, while revenue rose 20% to $50.99 billion. Investment banking boom: Investment banking fees rose 52% year over year to $2.3 billion, beating expectations. Cautious optimism despite geopolitical concerns CEO Jamie Dimon acknowledged potential risks such as inflation and rising interest rates, despite positive valuations for stocks and bonds. He also highlighted the complex geopolitical situation as a potential threat to t...