Dow Jones Extends Winning Streak
The Dow Jones Industrial Average closed higher again on Thursday, as it extends its winning streak to 6 days. It’s also the best run by the blue-chip index since February this year. The index finished 0.8% while the S&P 500 Index and the Nasdaq Composite Index gained by an identical 0.9%.
The U.S. stocks are reacting favorably to the strong corporate earnings as well as higher oil prices. Fears that the Federal Reserve will move to hike interest rate dissipated as data showed inflation eased last April. The anticipated consumer sentiment report will be published by the University of Michigan on Friday morning.
Dropbox Impresses with First Earnings Report Post IPO
Investors were pleased with Dropbox Inc.’s (DBX) first quarterly earnings since its IPO last March. The financial report of the sharing and storage company beat Wall Street expectations and bested estimates for paying subscribers. DBX gained 10% this week prior to reporting but slid 4% during the extended trading on Thursday.
The number of DBX’s paying subscribers increased to 23.7% to 11.5 million as of the end of March. Analysts’ had an average estimate of 11.3 million. Likewise, their reported average revenue per user (ARPU) of $114.3 in the first quarter is better than the analysts’ estimate of $110. They forecast the current-quarter revenue to be in the range of $328 million and $331 million.
Dropbox is competing with tech giants such as Alphabet Inc. (GOOGL), Amazon.com Inc. (AMZN), and Microsoft Corp. (MSFT). Box Inc. (BOX) is also a rival. The company is working to build up its enterprise software offering.
Nvidia Reports Sales Revenue from Crypto Market
For the first time, Nvidia Corp. (NVDA) disclosed on Thursday how much revenue it generated from chip sales to the cryptocurrency market. The company said demand from cryptocurrency miners was stronger-than-expected in the first quarter. It brought in $289 million in revenue.
But Nvidia also predicted during the conference call that the figures will most likely drop by two-thirds in the current fiscal quarter as crypto sales are declining.
According to Nvidia CEO Jensen Huang, “Crypto miners bought a lot of our GPUs in the quarter and it drove prices up.” He added, “I think that a lot of gamers weren’t able to buy into the new GeForce as a result.” NVDA fell as much as 3.8% in extended trading after reporting.
Cisco Fears their Ads on YouTube Land on Extremist Channels
Cisco Systems Inc. (CSCO) is pulling out all its online ads from YouTube for fear that their ads might have been appearing and running on extremist channels. The action of the network gear maker stems from a CNN report in April that over 300 companies placed ads on those said channels.
Cisco’s chief marketing officer, Karen Walker, Cisco’s chief marketing officer, posted a blog on Wednesday indicating the company must have unknowingly financed some of the radical channels that feature sensitive content. Visitors to the Cisco website can no longer see the blog on Thursday.
The blog added the company would not like its ads to “accidentally end up in the wrong place, such as on a streaming video with sensitive content.” It also clarified that they will continue to use YouTube as a platform to share Cisco’s video content. In response, Alphabet Inc. (GOOGL), which owns YouTube, said it has partnered with advertisers to make necessary changes.
Starbucks’ Bathrooms Open to Everyone
The Chairman of Starbucks Corp. (SBUX), Howard Schultz, reiterated on Thursday that bathrooms of the coffee chain will be open to anyone, whether the person who wants to use them is a paying customer or not.
Starbucks’ CEO Kevin Johnson reacted swiftly and publicly apologized following the arrest of two black men in their Philadelphia branch last month.
On May 29, Starbucks will 8,000 company-owned stores in the U.S. where all personnel will undergo extra racial bias training. Schultz is aware that the company has a “loose” policy that bathrooms can only be used by paying customers.
Store managers have the say as to how and to whom the policy will apply. However, he said the decision by the Philadelphia store manager to call the police was “absolutely wrong in every way” but Starbucks is assuming responsibility,