What’s News in Markets: Magnificent Seven, Spotify Jumps, UPS Disappoints
Digest
This podcast episode provides an overview of the week's stock market performance, highlighting the significant decline caused by disappointing earnings reports from Tesla and Alphabet. The episode then delves into Spotify's positive earnings report, emphasizing its second consecutive profitable quarter, subscriber growth, and plans for a new, more expensive subscription tier offering high-fidelity, lossless music. Next, the podcast discusses UPS's disappointing earnings report, which included a lowered revenue outlook and price cuts. The segment explains how UPS's declining U.S. package volumes are driven by customers opting for cheaper, slower ground delivery. The episode concludes with a discussion of the NBA's new media rights deals, highlighting Warner Bros. Discovery's unsuccessful attempt to retain its rights to NBA games. The segment details Warner's failed bid to match Amazon's offer and its subsequent lawsuit against the NBA. The podcast encourages listeners to read more about the week's stock market news in the Wall Street Journal's "Score" column and "Exchange" section.
Outlines
Stock Market Overview and Key Companies
This segment introduces the podcast and provides an overview of the week's stock market performance, highlighting the significant decline in the market, particularly on Wednesday due to disappointing earnings reports from Tesla and Alphabet. The segment also mentions the "Magnificent Seven" tech stocks and their performance.
Spotify's Earnings and New Subscription Tier
This segment focuses on Spotify's positive earnings report, highlighting its second consecutive profitable quarter, subscriber growth, and plans for a new, more expensive subscription tier offering high-fidelity, lossless music.
UPS's Earnings and Price Cuts
This segment discusses UPS's disappointing earnings report, which included a lowered revenue outlook and price cuts. The segment explains how UPS's declining U.S. package volumes are driven by customers opting for cheaper, slower ground delivery.
Warner Bros. Discovery's NBA Rights Battle
This segment covers the NBA's new media rights deals, highlighting Warner Bros. Discovery's unsuccessful attempt to retain its rights to NBA games. The segment details Warner's failed bid to match Amazon's offer and its subsequent lawsuit against the NBA.
Keywords
Magnificent Seven
A group of seven major tech stocks: Tesla, Alphabet, Apple, Amazon, Meta Platforms, Microsoft, and Nvidia. These companies are known for their significant market capitalization and influence on the tech sector.
Lossless Audio
A type of audio compression that preserves the integrity of the original audio signal, resulting in higher quality sound. This is achieved by avoiding data loss during compression, unlike lossy compression methods.
NBA Media Rights
The rights to broadcast NBA games, which are highly valuable and subject to competitive bidding among major media companies. These rights are typically awarded for multi-year contracts and include both television and streaming rights.
Warner Bros. Discovery
A global media and entertainment company formed through the merger of WarnerMedia and Discovery, Inc. The company owns a diverse portfolio of assets, including cable networks, streaming services, film studios, and television production companies.
Spotify
A popular music streaming service that offers a wide range of audio content, including music, podcasts, and audiobooks. Spotify operates on a freemium model, offering a free ad-supported tier and premium subscription tiers with additional features.
UPS
A global package delivery company that provides a range of shipping and logistics services. UPS is known for its extensive network of delivery vehicles and facilities, as well as its focus on efficiency and reliability.
Q&A
What were the main factors that caused the stock market decline this week?
Disappointing earnings reports from Tesla and Alphabet, along with concerns about inflation and consumer spending, contributed to the market decline.
What is Spotify's new subscription tier and what features will it offer?
Spotify is introducing a more expensive subscription tier that will include high-fidelity, lossless music, providing higher quality audio for subscribers.
Why did UPS's stock price decline this week?
UPS's stock price declined due to disappointing earnings, a lowered revenue outlook, and price cuts. The company's declining U.S. package volumes are driven by customers opting for cheaper, slower ground delivery.
What happened with Warner Bros. Discovery's attempt to retain NBA rights?
Warner Bros. Discovery failed to match Amazon's bid for NBA streaming rights, leading to the loss of its rights to broadcast NBA games on TNT. The company subsequently filed a lawsuit against the NBA.
Show Notes
What made the Magnificent Seven so miserable? And why did Spotify’s latest earnings call please investors? Plus, how UPS failed to deliver. Host Francesca Fontana discusses the biggest stock moves of the week and the news that drove them.
Learn more about your ad choices. Visit megaphone.fm/adchoices
Table of contents
United States
