Searching for Revenue
As for Goldman Sachs, it is also looking for other avenues for revenue. After months of review, the investment firm is paring down its commodities arm, citing too much capital used for too little profit generated.
The proposed move comes as Chief Executive David Solomon is reassessing the firm’s business operations in order to cut costs and explore other avenues for profit generation. Commodities traders at Goldman had their worst year in 2017 and only improved slightly in 2018.
Goldman Sachs generated $6.04 per share in profit for the fourth quarter of 2018, versus the $4.45 per share estimate of analysts surveyed by data company Refinitiv. The investment bank also posted revenue of $8.08 billion, beating estimates of $7.55 billion.
Both Apple and Goldman Sachs are entering a competitive space with little experience. Goldman Sachs is hoping to leverage Apple’s wide user base to attract cardholders that can earn cash back rewards of 2 percent on purchases and possibly more on Apple devices.
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