Alphabet risks losing sight of ABCs of search 2 Feb 2021 Google’s parent posted a 23% bump in quarterly revenue and growth recovered in its search-ads cash cow. But it’s losing share to Amazon, and competitors like Facebook are a growing threat. Rivals are also under political pressure but Google’s problems make it harder to ignore.
Subdued Alibaba offers shoppers discount on self 2 Feb 2021 Quarterly sales at its commerce unit jumped 38% to $30 bln, showing the Chinese giant is still a formidable force despite regulatory woes. Most importantly, the cloud business turned an adjusted profit for the first time. Even if growth slows later, the business looks cheap now.
Nintendo could reach next level in two-player mode 1 Feb 2021 Millions of homebound gamers helped drive quarterly operating profit up 36% to $2 bln. Despite hit franchises like Super Mario, the Japanese company depends on its Switch console, whose sales are peaking. Teaming up with partner Tencent in mobile would unlock steadier earnings.
Myanmar all but fades from investment frontier 1 Feb 2021 Military detentions of Aung San Suu Kyi and other ruling party figures represent a dark turn for a once-bright opportunity. An economy that lured tourists and foreign companies such as Kirin may be headed back to isolation. Recovering again will be a painstaking process.
India Insight: Amazon has plenty to fight for 1 Feb 2021 The e-commerce titan led by Jeff Bezos is trying to stop the sale of a big-box retailer to Mukesh Ambani’s Reliance. The spat centres on a disputed contract. An Amazon victory could cost thousands of jobs. The business itself may be less important than the message being sent.
Robinhood free lunch was never really free 29 Jan 2021 The online broker’s restrictions on trading of stocks like GameStop look at odds with its mission to democratize finance. Yet Robinhood’s rush to raise cash shows that there’s a side to zero-cost trading that users don’t see. Safe trading costs money, one way or another.
Shaky electric-car maker zips into market mania 29 Jan 2021 Faraday Future, which has yet to sell a vehicle, will get yet another lease on life by way of a SPAC. Chinese automaker Geely is also backing the $3.4 bln venture. There are red flags galore, including internal control weaknesses. The biggest may be founder Jia Yueting himself.
Pain of China’s bad holiday will be widely shared 29 Jan 2021 Fresh Wuhan-style lockdowns have been imposed ahead of the Lunar New Year break, a week-long spending boom. Less travel may reduce disruption for factory owners but it’s a blow for already weak consumption. A subdued getaway will exacerbate the imbalances of China’s recovery.
China creates a bigger consumer credit mess 28 Jan 2021 Beijing needs institutions that measure individual default risk. Given thin credit histories at banks, it wants fintech giants like Ant to hand over valuable data to state-run firms with fuzzy business models in exchange for equity. That’s no way to build a sustainable system.
Apple’s new golden goose is at risk of plucking 27 Jan 2021 The $2.4 trln tech group made $15.8 bln in revenue from services last quarter. If growth keeps up, subscriptions and such could be more profitable than the iPhone within a few years. It's also where Apple is most vulnerable to antitrust pressure from regulators and customers.
China’s BYD builds sleek concept car factory 27 Jan 2021 The $100 bln electric-vehicle maker’s chip unit is in the spotlight with an upcoming IPO. BYD also produces batteries, giving it an edge over rivals grappling with supply-chain woes. Such vertical integration only looks feasible with generous government support, however.
Tencent rally rests on froth and fundamentals 26 Jan 2021 A 30% share surge this year puts the Chinese web giant within reach of a $1 trln market capitalisation. Global stock euphoria is a factor, but Tencent’s video-games dominance has increased. Unlike rivals Ant and Alibaba, it has evaded the worst of regulatory crackdowns so far.
Chinese vaping IPO leaves risk factors up in smoke 26 Jan 2021 Rlx shares surged in their debut, delivering a $46 bln valuation that tops Japan Tobacco’s. Revenue is growing fast, despite an earlier ban of domestic online sales. A wider backlash also singed Altria’s bet on Juul. Overlooking regulators can be hazardous to investors’ health.
Corona Capital: Food delivery, Video games 25 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: Hedge fund Tiger Global gets a taste for food-delivery investments; and Jagex, developer of fantasy game “RuneScape,” is flipped to Carlyle less than a year after its last sale.
ByteDance casts shadow over rival Kuaishou’s IPO 25 Jan 2021 The Chinese video app is eyeing a valuation of up to $62 bln, over 30 times forecast EBITDA. Top sovereign funds have backed the premium multiple, about three times that of smaller peers. But a costly battle with TikTok-owner ByteDance looms large over its future prospects.
Reliance’s shop window distorts India view 25 Jan 2021 The $185 bln conglomerate led by Mukesh Ambani grew quarter-over-quarter net profit by 40%, partly reflecting the country’s rebound. The bottom line also was flattered, however, by lower interest costs after selling stakes in its digital business. That masks gaps in the recovery.
Google threat demands that Australia find allies 22 Jan 2021 The tech titan says it’ll disable search Down Under if Canberra enacts a law forcing it to pay media companies for news. It goes to show how much clout $1.3 trln parent Alphabet thinks it has. Such corporate dominance suggests global regulators may have to put up a united front.
Chinese edge of India’s fintech star is too sharp 22 Jan 2021 The $16 bln Paytm sought to emulate China’s e-commerce and mobile wallet pioneers, including backer Ant. But that model has come under Beijing’s scrutiny, and rivals like Google have broken Paytm’s grip on payments. Founder Vijay Shekhar Sharma’s startup has hit a tricky patch.
Options trading bubble draws frothy M&A equivalent 21 Jan 2021 Britain’s IG is buying tastytrade for $1 bln in cash and shares. The price seems high, even allowing for surging demand for the Chicago-based group’s derivatives products. As with the current stock-market boom, success depends on continued interest from flighty retail traders.
Chinese monopoly rules threaten super-app model 21 Jan 2021 The central bank has defined payments dominance in market-share terms, squarely targeting Ant and Tencent. Its new draft rules also separate transactions from interest-bearing products. That will complicate cross-selling more profitable services, and deter new competitors.