The US stock market gained on Wednesday as the investors digested the earnings reports of major corporations and monitored major business news which include acquisitions. Microsoft announced the acquisition of cloud security startup CloudKnox, while Salesforce completed the acquisition of Slack Technologies, Inc.

Netflix, Verizon Communications Inc., Coca-Cola Company, and COVID vaccine maker Johnson & Johnson all reported better-than-expected financial results in the fiscal year’s second trimester.

US Stock Market Major News

Microsoft acquires cloud security startup CloudKnox

Microsoft announced on Wednesday its most recent acquisition of CloudKnox company, a leader in Cloud Infrastructure Entitlement Management (CIEM), which helps control who gains access to cloud services. The move comes in line with Microsoft’s efforts to expand its security business.

Since last month, Microsoft added two security startup companies, RiskIQ and ReFirm Labs, to help build strong defense systems spanning from chip to cloud.

Salesforce completes $27.7 billion Slack acquisition

Salesforce announced on Wednesday that it completed the acquisition of Slack Technologies, Inc.

“We couldn’t be more excited to have Slack as part of the Salesforce family, combining the #1 CRM and the trailblazing digital platform for the work anywhere world,” Salesforce CEO Marc Benioff stated.

The $27.7 billion deal was first announced in December 2020 and was allowed to go ahead this week after the United States Department of Justice’s (DoJ) Antitrust Division informed the companies its investigation into the agreement has been closed.

CocaCola Q2

The Coca-Cola Company net revenue in the second quarter of 2021 rose by 42% to $101.1 billion while its operating income grew by 52%, while its earnings per share (EPS) increased by 48% year-on-year to $0.61 per share.

“Our results in the second quarter show how our business is rebounding faster than the overall economic recovery, led by our accelerated transformation,” the company’s Chairman and Chief Executive Officer (CEO) James Quincey said. “We are better equipped than ever to win in this growing, vibrant industry and to accelerate value creation for our stakeholders.”

Verizon’s Q2 total revenue at $33.8B

Verizon Communications total revenues for the second quarter of 2021 rose by 10.9% to $33.8 billion while its net income reached $5.9 billion. Consumer segment operating income rose 6% year on year to reach $7.5 billion, while business segment operating incomed saw a 9.5% yearly decline to $856 million.

J&J reports Q2

Johnson & Johnson total revenue for the second quarter of 2021 increased by 27.1% when compared to the previous year reaching $23.3 billion.

The pharmaceutical company’s adjusted net earnings went from $4.4 billion to $6.6 billion, marking a per annum gain of 49%.

Alex Gorsky, Chairman, and CEO of J&J, commented on the results: “Our second-quarter results showcase Johnson & Johnson’s diversified portfolio, driven by strong sales and earnings growth across our Medical Device, Consumer Health, and Pharmaceutical businesses.”

SAP’s Q2

SAP SE total revenue for the second quarter of the financial year decreased 1% to stand at €6.7 billion.

Operating profit went from €1.3 billion to €984 million, constituting a 23% per annum decline.

Christian Klein, SAP CEO, said of the results: “We’re seeing strong adoption of our cloud portfolio as customers selectSAP for their business transformation. Our strategy is working; This is the third straight quarter of strong execution, and we continue to deliver unparalleled customer value through the strength of our platform and applications.”

Daimler’s Q2

Automaker Daimler’s revenue in the second quarter rose by 44% to €43.5billion while net profit soared to €3.7 billion, compared to a net loss of €1.9 reported in the same quarter a year earlier. The company’s added its sales jumped 36% to 736,400 units.

“We achieved a strong performance across all divisions in the second quarter. At Mercedes-Benz Cars and Vans, we posted double-digit margins for the third quarter in a row and thus demonstrated the resilience of our business – despite the persistently low availability of semiconductors,” Chairman Ola Kaellenius stated.

Netflix Q2

Netflix Inc. on Tuesday reported that its revenue for the second quarter of fiscal 2021 rose by 19.4% to $7.3 billion.

Net income was up 88% year on year to reach $1.4 billion, while operating income was up 36% to $1.8 billion.

The number of global streaming paid memberships was up 8.4% year over year in the second quarter, standing at 209.18 million in total.

Porsche fined €40 billion over tax evasion

Stuttgart Public Prosecutor’s Office announced on Wednesday it has fined Volkswagen Group’s Porsche AG €40 billion for failing to report accurate figures in its tax declarations for the period between 2009 and 2016.

The public prosecutor stated the sentence refers to six current and former members of Porsche’s executive board. The office added the information on the company’s taxes was reported “incompletely or incorrectly, which at least made it easier for employees to reduce taxes and enriched them with tax savings.”

Nvidia executes 4-1 stock split

Nvidia Corp. on Tuesday executed a 4-1 stock split in an effort to make investing more accessible for individuals and company employees.

In its first-quarter earnings announcement, the tech giant reported as much as 84% increase in revenue surpassing market estimates. The next results release is scheduled for mid-August.

Pfizer, Biovac to manufacture vaccine in S. Africa

Pfizer Inc. and BioNTech SE have announced a partnership with The Biovac Institute in Cape Town to manufacture the companies’ mRNA coronavirus vaccine in South Africa.

According to the companies, Biovac will take over the manufacturing of over 100 million doses of the Pfizer/BioNTech shot per year to be distributed within the 55 member states of the African Union.

“Our latest collaboration with Biovac is a shining example of the tireless work being done, in this instance to benefit Africa. We will continue to explore and pursue opportunities to bring new partners into our supply chain network, including in Latin America, to further accelerate access of COVID-19 vaccines,” Pfizer CEO Albert Bourla said of the deal.

Bezos’s Blue Origin Trip to Space

Amazon.com Inc. Executive Chairman Jeff Bezos said on Tuesday his company Blue Origin plans to carry out two more crewed flights to space this year.

Bezos added he is still “not sure” what the firm’s plans for 2022 would be. “The demand is very, very high, so we’re gonna keep after that because we really want to practise with this vehicle. So we’re gonna have to build more boosters to fly more frequently,” he said. “We want to make it closer to 100 than to 25.”

Earlier on Tuesday, Bezos flew to space with Blue Origin’s New Shephard. He and his crew made a safe return to Earth four minutes later. Bezos went on to say the experience “dramatically exceeded” his expectations.

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