Rising on Wall Street – Spotify rises sharply after the numbers are released

Wall Street’s major indexes rose Tuesday evening, Norwegian time, after a weak start to the week on Monday. Government interest rates in the United States remain stable at yesterday’s level, with the two-year interest rate at about 5.08 percent, and the ten-year interest rate at 4.84 percent.

This is what it looked like at 8:30 p.m.:

• The Nasdaq index rose 0.7 percent.
• The Dow Jones index rose 0.6%.
• The Standard & Poor’s 500 rose 0.6%.

The development in the New York Stock Exchange comes after a broad rise in the European stock market throughout the day. On the Oslo Stock Exchange, the main index rose 0.8 percent.

The Giants are putting up numbers

On Tuesday evening, the market will focus on Alphabet, the owner of Google, and Microsoft, which will present quarterly numbers. The latter has a different fiscal year, so the numbers that come after Wall Street closing time are for the first quarter of fiscal year 2024.

For Alphabet, it is expected to report revenue of $75.54 billion and pre-tax earnings of $21.9 billion. In an advance review, Bloomberg wrote that a ten percent increase in net income is expected, which in this case would be the fastest annual growth rate in five quarters. The expected promise is due to the improvement in the digital advertising market.

The results of the cloud business, which is just starting to make money, are also eagerly awaited.

For Microsoft, its revenues are expected to reach $54.5 billion and pre-tax profits are expected to be $24.4 billion. In this case, this would be the fourth straight quarter in which the top line rose by single digits, at the same time that demand for cloud services declined, Bloomberg wrote.

In a note, financial brokerage firm Jefferies, quoted by the news agency, wrote that it was looking for new signals about the company’s investment in artificial intelligence.

Today’s release of the numbers from Microsoft comes almost two weeks after British competition authorities gave the green light to the much-discussed acquisition of gaming producer Activision Blizzard.

Welcome to Spotify

On the other hand, Spotify’s price rose by about ten percent, after providing encouraging numbers for the third quarter. In this period, the music streaming giant achieved an operating profit of €32 million, against an expected operating loss of €44.6 million.

Revenues amounted to 3.4 billion euros, up 11 percent and barely above initial estimates. The total subscription base rose to 574 million, a number the company expects to rise to 601 million by the end of the fourth quarter.

Of these, there were 225 million unique subscribers.

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