Recently, Goldman Sachs had to suffer a steep fall in its share after the company’s Q1 revenue was below analysts’ expectations. In a press event on April 15, 2019, the spokesperson of Sachs said that the organization had to suffer a fall and its revenue was a total of $8.81 billion. Previously, analysts had predicted that Sachs would make revenue around $8.9 billion.
The organization has also registered a profit of $2.25 billion; the company further got a rise in price per share. Previously, analysts had estimated price per share about $4.89, but the price per share of the Goldman Sachs’ share rose to $5.71.
During a press event, the CEO of Goldman Sachs said that the company has performed well in the first quarter. David Solomon also stated that the company is trying to diversify its dealing in various sectors and want to serve a global population. He further stated that the organization is also planning to increase its overall efficacy for better customer service.
Due to the cut-throat business environment, the company had lowered its employees’ compensation. From its fourth quarter, the company has also cut back 2% of the headcount. Last month the Goldman Sachs also started to offer finance to consumers. The firm has announced a joint credit card venture with Apple.
During a press meet, J.P. Morgan Chase said that though Goldman Sachs is considered as one of the biggest banks in America it is still dependent on Wall Street. The spokesperson also said that this is also the main reason why their revenue declined during the first quarter. Last year, Goldman Sachs’ name was also related with 1 MDB scandal.
In an exclusive interview, Scherr said that Goldman Sachs has started to cut capital from those areas which aren’t performing well. According to sources, Solomon or Scherr would provide genuine updates on the strategic review report which was released by the organization back in 2018.