![]() Network advertising revenue tumbled by 13% in the second quarter from the year-earlier period, although the metric did improve slightly on a sequential basis and was ahead of Wall Street consensus estimates. Total revenues from the studios division fell a whopping 23% year-over-year in the quarter, or 24% excluding foreign exchange, following the disappointing debuts of both the "The Flash" and "Shazam! Fury Of The Gods." ![]() Still, a disappointing box office, coupled with a continuously weak advertising environment, weighed on second-quarter results. Streaming losses reversed in the first quarter. That was a significant improvement compared to the $558 million loss in the year-ago period. Marketing and launch costs related to Max, which debuted at the end of May, also propelled a direct-to-consumer loss of $3 million in the quarter. The company saw elevated churn following the debut of its Max streaming service, as customers with overlapping subscriptions to both Max and Discovery+ shed extra accounts. WBD said it is now targeting $5 billion in cost savings over the next two years, up from the previous $4 billion. ![]() The company reported over $1.7 billion in free cash flow in the quarter, more than double the $789 million seen in the year-ago period. The quarterly results reflect how WBD is performing about a year after its formation, when AT&T's WarnerMedia merged with Discovery. Discovery ( WBD) reported second-quarter earnings before the bell on Thursday that missed estimates as the media giant works to pare down its debt amid linear TV challenges, an unfavorable ad market, and a hotly competitive streaming landscape. Discovery reports earnings miss as free cash flow jumps "Should employment and inflation pick up steam, mortgage rates are likely to continue climbing as markets anticipate further monetary tightening." "This development, along with upcoming employment and inflation data, will determine how much mortgage rates may rise in the short term," Jones said in an email. Fixed mortgage rates tend to follow the yield on the 10-year Treasury. This comes as on Wednesday, Treasury yields ticked up after an unexpected downgrade of the United States' sovereign credit rating by Fitch Ratings. "Still-high home prices and elevated mortgage rates have eaten into purchasing power for many buyers, leading to both fewer home sales and fewer listings." "Homebuyers continue to feel the effects of tighter policy, which keeps a floor under mortgage rates," Economic Data Analyst Hannah Jones said in an email. The rise in rates compounds affordability concerns for homebuyers who are also dealing with increasing home prices and low inventory. That's the second-highest level this year. The average rate on the 30-year fixed mortgage increased to 6.90% this week, up from 6.81% the week before, according to Freddie Mac. Purchasing a home just got pricier this week after mortgage rates crept closer to 7%. Alphabet stock jumped as much as 6% in after-hours trading on July 25."īad news for homebuyers: Mortgage rates moved higher Meanwhile, Google Cloud turned profitable for the first time in Q1 and saw an income of $395 million this quarter - a stark contrast to the same quarter last year, when Google Cloud reported a $590 million loss. Despite the company's overall 8% revenue increase, Microsoft's stock dropped after hours. Garfinkle writes: "Microsoft Azure clocked a decline in its revenue growth, which has been the case each quarter since at least Q3 of last year. But cloud is in the midst of a slowdown, and it's unclear when that will end.Īlphabet ( GOOG, GOOGL) and Microsoft ( MSFT), both cloud rivals for Amazon, reported earnings last week with mixed cloud results. When Amazon ( AMZN) reports fiscal Q3 earnings after the bell, investors will be watching results from the company's Amazon Web Services segment in particular.Īs Yahoo Finance's Alexandra Garfinkle reports, AWS has long been critical to the company's overall results.
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