HomeFinancial MarketsGoldman Sachs Beats Expectations Despite 48% Profit Drop

Goldman Sachs Beats Expectations Despite 48% Profit Drop

Goldman Sachs Group Inc came on top in the second quarter, reporting results that decisively beat the analysts’ expectations. According to Monday’s report, the investment bank had $7.73 a share compared to an estimated $6.58 per share and $11.86 billion revenue vs. $10.86 billion expected.

This is considered a success for Goldman Sachs despite a 48 percent drop in profits, which came at $2.8 billion as opposed to $5.3 billion in the same period in 2021. This is because Goldman joined Citigroup as one of the few major U.S. banks to have a positive second quarter. The majority of competitors, including Wells Fargo, JPMorgan Chase, and Morgan Stanley, either reported mixed results or missed the mark entirely.

Goldman outperforming expectations isn’t a surprise considering its track record of doing well in times of challenging economy. The surging prices of assets surely helped, given the bank’s diverse investment vehicle.

Following the report, Goldman Sachs stock (GS) took a four percent jump in premarket trading. After closing at $293.67 on Friday, the bank’s shares reached $309.33 at one point on Monday morning. Still, this is still a 23 percent drop from the start of the year, when Goldman traded north of $400 per share.

S&P 500 Hits New Record as Dow Surges

Stocks on the New York Stock Exchange surged on Wednesday to recover from several days of declines. The S&P 500 surged by 0.8% to...

GameStop Stock Plunges Following Slump in Revenue

Shares in GameStop plummeted by 16% in extended trading after the company announced its fourth-quarter earnings. Revenue was $1.79 billion, down from last year's...

Tesla Offers One-Month Trial of Driver-Assist Technology

Electric vehicle maker Tesla is set to offer a one-month free trial to U.S. customers of its driver-assist technology, Full Self-Driving (FSD), CEO Elon...