Alibaba’s $400 bln selloff makes case for buybacks 24 Feb 2022 The Chinese giant delivered a dismal set of results with sales at its core business falling for the first time. After a 60% drop in the stock over the past year, a big repurchase would send a signal of confidence. With $60 bln of net cash, Alibaba can afford to splurge on itself.
India Insight: Digital diplomacy builds bridges 21 Feb 2022 Open architecture underpinning the country’s booming fintech market is being adopted by Nepal and partly by Bhutan. Google also recommended it to the U.S. Fed. It’s a cheaper way to court allies than China’s Belt and Road projects. The soft power returns are valuable too.
Walmart’s trusty talent is less use in new domain 17 Feb 2022 The $375 bln company’s stronger-than-expected sales and profit are testament to its ability to manage inflation and supply chain pressures. A push into advertising and subscriptions is taking the retailer closer to Amazon’s turf. It will be harder to shine in this territory.
Chinese e-commerce IPO hawks an Alibaba antithesis 17 Feb 2022 Huitongda mainly sells electronics and fertiliser to wholesalers in rural areas. It's a low-margin and simple business compared to the expansive shopping empire run by its large backer. Amid the tech rout, the $3 bln company's Hong Kong stock sale ticks some of the right boxes.
Shopify plays to one trend, bucks another 16 Feb 2022 The Canadian e-commerce firm’s shares fell after it said it’s shifting towards a more Amazon-like model of operating warehouses. Having surfed the online shopping wave, Shopify risks losing investors who have chased the asset-light tech craze too.
Canada’s tech darling may be headed for a fall 14 Feb 2022 Shopify already fell off its perch as Canada’s most valuable listed company, but the e-commerce giant’s $105 bln valuation is still in the stratosphere, at over 100 times forecast EBITDA. With tech investors jittery, even a minor slipup could lead to a sizeable correction.
Dutch $64 bln payments star is cure for tech gloom 9 Feb 2022 Adyen’s stock surged 10% after its results showed accelerating revenue. Following the rout in shares like PayPal and Netflix, it’s a reminder that piggybacking on the digital economy is a good bet. The catch for investors is that the best firms still trade at crazy valuations.
SoftBank Alibaba problem is worth more than an Arm 8 Feb 2022 Weak earnings from the Japanese conglomerate were eclipsed by its failed sale of the chip designer. Floating it instead could yet work well, but it won’t ease boss Masayoshi Son’s bigger issue: his stake in the Chinese e-commerce titan, which is worth as much as his entire firm.
Capital Calls: Continental, Harley-Davidson 8 Feb 2022 Concise views on global finance: German car-parts maker Continental may spin off its self-driving unit, while the iconic maker of motorbikes has turned supply shortages to its own advantage.
Amazon has a unique inflation problem 3 Feb 2022 Like peers, the $1.4 trillion giant dominates markets and has businesses that are growing rapidly. Yet Amazon has about 10 times as many workers, and a vast network of infrastructure vulnerable to rising prices. Yet it’s valued as if it does not.
PayPal tries to suck more juice from fewer lemons 2 Feb 2022 The $160 bln payment firm has admitted that piling on 50 mln new customers a year isn’t the path to profit it previously thought. From now on it will seek to get more out of the customers it has. As other financial firms have a similar epiphany, a land grab may become a turf war.
Capital Calls: Activist investors, P&G, Rivian 19 Jan 2022 Concise views on global finance: Underperforming UK stocks lure cage-rattling shareholders to London; sickness and germaphobia boost the $380 bln company’s earnings: And Ford Motors and Amazon.com book big gains on investments in the electric carmaker as its stock tumbles.
Southeast Asia still loves New York 10 Jan 2022 While U.S.-listed Chinese companies move home, Indonesian and Vietnamese startups are eyeing a berth in the Big Apple. Unlike their northern peers, these hopefuls are starting with home floats. Ensuring IPOs fill local coffers first is good politics and makes financial sense too.
Tencent’s Sea rejig keeps most people happy 4 Jan 2022 The Chinese tech behemoth is selling part of its stake in its $120 bln Singaporean peer. Sea also plans a revamp of its supervoting shares so that founder Forrest Li retains control. Li, Tencent and even Beijing can cheer. Minority investors have the least reason to be enthused.
Tencent sets stage for empire tidy-up 23 Dec 2021 The Chinese giant is sitting on a $185 bln investment portfolio that confuses investors and might bother regulators. Its decision to return most of a $19 bln stake in e-commerce ally JD to shareholders makes strategic sense and is financially savvy. Other sales could follow.
Ant will be best among China’s BAD bunch 23 Dec 2021 After a brutal year for tech, ByteDance, Ant and Didi will spearhead the sector’s recovery. A shaky ad market looms for the restructured TikTok owner, however, while the ride-hailing company faces rising driver costs. Jack Ma’s fintech outfit has the clearest path ahead.
China celebrity crackdown is tech’s horror show 21 Dec 2021 "Queen of livestreaming" Viya was fined $210 mln for tax evasion and had her social-media accounts shut. Investors wiped up to 12% off platform providers like Bilibili and Alibaba. The effect on the fast-growing $300 bln influencer market suggests that underestimates the risk.
Alibaba climate tide can lift valuation boat 20 Dec 2021 The e-commerce titan, whose market worth has halved this year, has unveiled bold 2030 carbon neutrality goals. Notably, it wants to widen the scope of consumer and merchant emissions it includes. Details will be key but longer term, the efforts could bolster shareholder returns.
Capital Calls: McDonald’s makes ex-CEO pay 16 Dec 2021 Concise views on global finance: The fast-food chain settled its lawsuit with ousted boss Steve Easterbrook, recovering compensation now worth $105 million.
The Exchange: Breakingviews at Reuters Next 9 Dec 2021 At the global conference, our columnists interviewed the movers and shakers at Ola Electric, Philip Morris, ViacomCBS and Klarna about disruption at scale in India, the challenges of making bold corporate transitions in tobacco and media, and Europe’s fintech frenzy.