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Top Midday Stories: OpenAI Reportedly Misses Internal Revenue, User Targets; Spotify Shares Fall After Tepid Guidance
The Dow Jones Industrial Average was up slightly, while the S&P 500 Index and Nasdaq Composite were down in late-morning trading Tuesday due, in part, to a downbeat report on OpenAI.In company news, Microsoft-backed (MSFT) OpenAI recently missed its own targets for new users and revenue, The Wall Street Journal reported late Monday, citing people familiar with the matter. The company missed an internal goal of hitting 1 billion weekly active ChatGPT users by the end of the last year, and it missed its yearly revenue target for ChatGPT, as well, the people reportedly told The WSJ. Chief Financial Officer Sarah Friar has expressed concern to other company leaders that OpenAI might not be able to pay for future computing contracts if revenue doesn't grow fast enough, the report said, citing the people. Microsoft shares were up 0.3% around midday.Spotify Technology (SPOT) reported Q1 earnings Tuesday of 3.45 euros ($4.03) per diluted share, up from 1.07 euros a year earlier and above the FactSet consensus analyst estimate of 2.95 euros. First-quarter revenue was 4.53 billion euros, up from 4.19 billion euros a year ago and matching the FactSet consensus estimate. For Q2, Spotify said it expects revenue of 4.8 billion euros, above the FactSet consensus of 4.77 billion euros. The company also said it expects 299 million premium subscribers in Q2, below the FactSet consensus of 300.4 million. Spotify shares were down 13.7%.Coca-Cola (KO) reported Q1 adjusted earnings Tuesday of $0.86 per share, up from $0.73 a year earlier and above the FactSet consensus of $0.81. First-quarter revenue was $12.47 billion, up from $11.13 billion a year ago and above the FactSet consensus of $12.24 billion. For full-year 2026, the company expects organic revenue growth of 4% to 5% and comparable earnings growth of 8% to 9%. Coca-Cola shares were up 5.9%.General Motors (GM) reported Q1 adjusted earnings Tuesday of $3.70 per diluted share, up from $2.78 a year earlier and above the FactSet consensus of $2.60. First-quarter revenue was $43.62 billion, down from $44.02 billion a year ago but above the FactSet consensus of $43.51 billion. For full-year 2026, the automaker now expects adjusted EPS of $11.50 to $13.50, up from $11 to $13 and compared to the FactSet consensus of $12.20. The company's board declared a quarterly cash dividend of $0.18 per share, payable June 18 to shareholders of record as of June 5. General Motors shares were down 1.6%.United Parcel Service (UPS) reported Q1 adjusted earnings Tuesday of $1.07 per diluted share, down from $1.49 a year earlier but above the FactSet consensus of $1.01. First-quarter revenue was $21.20 billion, down from $21.55 billion a year ago but above the FactSet consensus of $20.98 billion. For full-year 2026, the company said it expects revenue of about $89.70 billion, above the FactSet consensus of $89.62 billion. UPS shares were down 4.2%.Walt Disney's (DIS) broadcast licenses may be headed for review by the Federal Communications Commission, Semafor reported Tuesday, citing people familiar with the matter. Disney shares were down 0.6%.Price: $426.28, Change: $+1.46, Percent Change: +0.34%
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