👊 Goldman Sachs smashes earnings

Today’s market performance 🏆️

S&P 500: +0.47% 📈
Nasdaq 100: +0.07% 📈
Dow 30: +0.79% 📈
Russell 2000: +1.64% 📈

FROM @ 1440 MEDIA

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TOP STORY
👊 Goldman Sachs smashes earnings

Goldman Sachs just had an incredible Q3.

Earlier this week, banking giant Goldman Sachs reported earnings, and it’s safe to say they blew expectations out of the water.

By the numbers:

• Earnings: $8.40 per share (vs. $6.89 per share estimated) ✅ 

• Total revenue: $12.7 billion (vs. $11.8 billion estimate) ✅

• Total profit: $2.99 billion (45% year-over-year increase) 📈

• Equities trading revenue: $3.5 billion ($2.96 billion estimated) ✅

• Investment banking revenue: $1.87 billion (vs. $1.62 billion estimated) ✅ 

• Asset and wealth management revenue: $3.75 billion (vs. $3.58 billion estimated) ✅

That’s a whole lotta billions.

One of the biggest factors, as you may have noticed, was investment banking revenue. 

We’ll spare you the trip to your local Tamid student and explain why it’s happening. 

With the Fed lowering interest rates, companies are finally making big moves again, like buying businesses and raising capital.

This naturally boosts Goldman’s business because more deals and investments lead to higher fees and profits.

WORD OF THE DAY

ENTERTAINMENT
👨‍🎤 The “Sphere” is coming to Abu Dhabi

A twin of the iconic Las Vegas Sphere is coming to Abu Dhabi.

Yesterday, Sphere Entertainment Co. and Abu Dhabi tourism officials revealed plans to bring the renowned venue to the UAE.

Don’t book your flights just yet; it’ll still be a while before it’s ready.

The Vegas Sphere took nearly five years and over $2 billion to build, even though, yes, COVID slowed the whole process and drove up costs even more.

The investment will be well worth it, though, as it will "further establish Abu Dhabi as a vibrant hub for culture and innovation.”

• The most exciting part, though, at least to me, is that Sphere Entertainment Co. is charging Abu Dhabi a "franchise initiation fee" for the right to build the venue.

• For those unfamiliar, franchising is basically when a company allows others to operate its business model for a fee. Think McDonald's or Subway.

• What makes this approach attractive for the Sphere is that it lets them expand their venues globally and collect a share every time someone builds an entertainment giant, all without lifting a finger.

Sounds like a great business model to me. 

Hey Elsa, wanna build a Sphereman with me?

ENTERTAINMENT
🤡 Joker 2 is a massive flop

The sequel to the 2019 smash hit Joker is officially a box office fiasco.

Joker: Folie à Deux, starring legends Lady Gaga and Joaquin Phoenix, grossed $51.5 million domestically and $165 million globally after two weeks.

By comparison, the first Joker movie made $96.2 million domestically and $248.4 million globally after just three days of release.

Damn.

Joker: Folie à Deux, yes, I like saying the title, isn’t even projected to end its run earning that much. 

• The film is expected to bring in a measly final gross of $65 million domestically and $210-215 million globally.

• Which means that Warner Bros, which financed the film, is going to lose a lot of money.

• Joker: Folie à Deux cost $200 million to produce, plus another $100 million for just marketing. 

• And with the film estimated to bring in only $210-215 million, the studio could lose between $150 million and $200 million.

Oh boy, looks like the Joke’s on Warner this time. Ha.