Dominic is a London-based columnist covering investment banking. Prior to Breakingviews, he spent two years at moneydealer ICAP, where he brokered equity derivatives trades between investment banks, high-frequency trading firms and hedge funds. He has more than five years of financial journalism experience, including stints as news editor and investment banking editor at Financial News. He has also written for The Wall Street Journal Europe. Dominic holds an MA in Classics from Oxford University and an MSc in Development Management from the London School of Economics. Follow Dominic on Twitter @DominicElliott
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Shares in the $23 bln UK microchip designer fell 4 pct after royalty revenue for using its blueprints barely grew. But licences are strong, smartphone demand growth could return soon, and the “internet of things” is promising. The company’s high-margin model is still holding up.
The $30 bln electronics group’s flatlining revenue in Q1 has dimmed near-term growth hopes. Troubles with traditional lighting and healthcare scanners could persist. But the basic investment case for Philips looks sound, especially if weaker emerging markets rebound.
The $100 bln German software group is the latest big tech firm to disappoint investors. Shares fell after currency moves hit Q1 results. Yet the investment case is improving. The stock has cheapened this year, and SAP’s shift to cloud-based databases seems to be working.
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