Comcast poised to spark streaming consolidation 15 Feb 2023 Hulu’s minority owner is a logical buyer for the rest after controlling partner Disney indicated it’s open to selling. The cable operator’s roots are in video distribution, and too many Netflix-wannabes abound. Boss Brian Roberts could kick off an overdue industry reckoning.
BYD’s world-beating EVs brace for a rougher ride 15 Feb 2023 The Chinese electric-car star outsold Tesla last year, and net profit zoomed up more than 1,000%. Economies of scale rule in a young industry. But even the leaders will struggle to keep up the pace as overcapacity and accelerating competition slam the world’s largest auto market.
Maybe U.S. inflation is transitory after all 14 Feb 2023 Prices rose 0.5% in January, a higher month-on-month rate than central bankers would like. Yet temporary events like a nationwide egg shortage were major contributors, and those price hikes are already reversing course. In the fight against high inflation, patience is a virtue.
Microsoft can answer antitrust “Call of Duty” 13 Feb 2023 UK regulators say selling the video game would ease their concerns over the software giant’s $69 bln purchase of Activision Blizzard. A disposal would be chunky, and boss Satya Nadella won’t want to leave it behind. But even without the franchise, the acquisition still stacks up.
Lyft is second horse in a one-horse town 10 Feb 2023 Mounting losses and a 35% plunge in the ride-sharing firm’s stock price are signals of how far Lyft is falling behind main rival Uber. The two are locked in a race where winning depends on cheaper fares or better-paid drivers. No wonder investors think two is a crowd.
Capital Calls: Adidas kitchen sink 10 Feb 2023 Concise views on global finance: Shares in the sportswear maker fell 11% amid forecasts of a high-single-digit decline in sales in 2023.
Meme investors go to bed, take a bath 7 Feb 2023 Near-bankrupt U.S. retailer Bed Bath & Beyond will gain slightly less cash than it burned last quarter by issuing shares after an irrational stock rally. The structure – $225 mln now and up to $800 mln later – isn’t that clean. And delaying the inevitable has an opportunity cost.
Public Storage has advantage in clutter battle 6 Feb 2023 The stuff-storing giant has kicked off an $11 bln takeover battle with an offer to buy smaller rival Life Storage. Based on today’s prices, the proposal leaves room for counterbids. But with storage companies looking historically expensive, Public’s stock gives it an advantage.
Paytm is stuck in dealmaking catch-22 6 Feb 2023 A banking licence would help the $4 bln Indian fintech generate earnings and boost its flailing share price. Regulators might only grant it once Ant and Alibaba offload their combined 28% stake. Yet the Chinese firms are unlikely to sell entirely until the stock improves.
Nordstrom will be back on discount rack soon 3 Feb 2023 The department store chain’s market value surged 20% to $4.1 bln on news that pushy investor Ryan Cohen is lurking. His meme-stock following outweighs any retail savvy. Bed Bath & Beyond, which he targeted, is near bankruptcy and other activists have struggled in the sector, too.
Apple tries to be both desirable and predictable 2 Feb 2023 The $2.4 trillion iPhone maker’s growth increasingly comes from services – and its valuation has risen as a result. But investors prize some kinds of service more highly than others. They seem to be betting that Apple has zoomed in on the more stable, less cyclical kind.
Crypto’s big unwind is far from over 2 Feb 2023 Investors piled into digital assets last month for the first time since the summer, and prices have recovered from FTX’s collapse. But issues – regulation, fraud, volatility – still threaten popular currencies, like bitcoin. Another big event will wipe out newfound confidence.
Goldman’s Marcus is a lesson in self-made failure 2 Feb 2023 The Wall Street firm’s blueprint for a digital bank was a good idea, until it buckled under an ambitious, top-down culture. CEO David Solomon is taking the blame, partly because almost everyone else who backed Marcus has quit. He can recoup the losses, but not the wasted time.
Investors are ignoring Meta’s hardware reality 1 Feb 2023 The $400 bln social media firm’s shares surged on a strong sales outlook and more stock buybacks. But a better 2023 after revenue fell last year is a long shot. Plus Meta’s big problem is its hardware pivot. Other tech companies that similarly transitioned did not have much luck.
Leery buyers put screws to U.S. homebuilders 31 Jan 2023 Pulte, which constructs more upscale houses, lifted quarterly sale prices 17%, but D.R. Horton and Lennar sacrificed operating margin to offload homes. High interest rates are keeping 80% of Americans downcast about the market. Optimistic valuations tell an oddly different story.
Big oil can be lean and not mean 31 Jan 2023 Net debt at Exxon and Chevron declined nearly $50 bln last year, and both are on path to having no debt at all. Neither seem inclined to lever up given oil’s murky and volatile future. But excess cash must go somewhere. Shareholders are in line for big payouts.
Pfizer goes back to the pharma meat-grinder 31 Jan 2023 Its warning that revenue will fall by one-third this year is a return to pre-pandemic doldrums, where pharma companies wrestled with the meager, declining returns of developing new drugs. The best shot for Pfizer and peers is to focus new technology on hard-to-treat diseases.
Global supply chain scars will spark sea change 31 Jan 2023 The business of shifting goods around the world plunged into chaos during the pandemic. In this Exchange podcast Alan Murphy, boss of researcher Sea-Intelligence, explains China’s changing role in global trade and how that impacts the price of everything from iPhones to cars.
Capital Calls: TikTok’s Beltway visit 30 Jan 2023 Concise views on global finance: The social media app’s CEO Shou Zi Chew is going in front of a U.S. Congressional committee. But it’s leaders outside of Washington that Chew needs to convince.
China’s reopening generates mirage of normality 27 Jan 2023 Movie sales during the Lunar New Year holiday beat last year's to hit $900 mln as travel rebounds. The relief bounce is unsurprising, but retail growth has yet to recover to pre-pandemic levels. Scarred consumers have too many reasons to avoid splurging.