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Wall Street boom: Investment banking revenue has soared in the first half of this year

Wall Street boom: Investment banking revenue has soared in the first half of this year

Wall Street is booming.

Yesterday Goldman Sachs reported its 2Q 2021 revenue, which came in at $15.4bn. That's the second highest Goldman has ever printed, second only to... the first quarter of this year. That means the 152-year-old investment bank has pulled in more than $33bn in the first half of this year, which is more than what it managed for the whole of 2017 ($32bn) — and it's not just Goldman, JP Morgan also reported profits that nearly doubled.

Deals, deals, deals

Modern investment banks do a lot of different things, and for Goldman most of its activities were up. Advising corporates on acquisitions and raising capital was up, investing money on behalf of clients was up and gains made from investing in private companies was way, way up.

The only thing that was actually down for Goldman was its trading biz — the part most people think of when they think of Wall Street. Revenues in its trading division were down 32% relative to last year, but that's partly just because this quarter last year was such a strong one, as everyone made trades to buy, sell or swap their investments during the peak "panic" of the pandemic.

Wall Street to Main Street

When Goldman's CEO isn't spinning records (he has 500k monthly listeners on Spotify), he's working on Goldman's strategy to get you — the everyday consumer — to bank with Goldman. That consumer banking effort brought in $363m in revenue last quarter, just 2% of Goldman's current total. DJ D-Sol will be hoping to pump those numbers up in the future.

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Starbucks issues apology after viral “Bearista” cup meltdown

Holiday cheer turned into chaos this week for Starbucks after the coffee giant’s new “Bearista” holiday cup sent fans into a frenzy. 

Dropped alongside its 2025 holiday menu, the $30 beanie-wearing glass bear tumbler sparked long lines, sellouts, and even in-store scuffles before Starbucks stepped in with an apology.

“The excitement for our merchandise exceeded even our biggest expectations,” the company said in a statement to People. “Despite shipping more Bearista cups to our coffeehouses than almost any other item this holiday season, the Bearista cup and some other items sold out fast.”

Within hours of launch, frustrated fans flooded Starbucks’ social media pages and even store hotlines. Some customers waited in line before dawn and others said their stores received only a handful of cups. In one Houston location, the craze even turned physical, with police reportedly called to break up a brawl. Meanwhile, the cup is already reselling on sites like eBay, with listings topping $600.

“We understand many customers were excited about the Bearista cup and apologize for the disappointment this may have caused,” Starbucks said. While in-store customers may be upset, investors seem happy about the viral hit, as the stock has risen over 3% on Friday.

If you’re still hoping for a Bearista at market price, that may not be on order: the chain didn’t disclose how many cups were made or whether a restock is planned.

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Target tells workers to smile, wave, and greet shoppers if they come within 10 feet of them

Target just rolled out a new rule for store employees: smile, make eye contact, and greet or wave when a shopper comes within 10 feet — and if they get closer, within four feet, ask whether they need help or how their day is going, according to a new Bloomberg report.

Dubbed the 10-4 program internally, the rule mirrors rival Walmarts own 10-foot policy, formalizing behavior Target had previously only encouraged.

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Monster surges on energy drink buzz, while Celsius sinks on distribution concerns

Shares of Monster Beverage climbed 5% after the bell on Thursday, and held most of those gains into early trading on Friday, following strong Q3 results.

The energy drink giant topped market expectations, with quarterly sales up 17% year over year to $2.2 billion and adjusted net profits growing 41% to $524.5 million — 11% ahead of Wall Street’s estimates. In the report, Monster highlighted its zero-sugar line and new product launches, with a stack of novel flavors already released this year, as bright spots.

During a call with analysts, Chief Executive Hilton Schlosberg said that the global energy drink category “remains healthy with robust growth,” The Wall Street Journal reported, adding that demand for more affordable caffeinated drinks is rising as coffee has become “really expensive.”

Meanwhile, rival beverage business Celsius saw shares fall as much as 23% on its Q3 results yesterday — despite beating expectations, with revenue jumping 173% — largely due to concerns about a change in the company’s distribution channel, as its newly acquired Alani Nu brand joins the PepsiCo distribution network.

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