Nvidia’s AI boom outpaces China limits 21 Nov 2023 The $1 trln semiconductor company tripled revenue, despite a crackdown on exports to the giant market. Unlike Apple, which also faces risks in China, there’s no substitute for Nvidia’s chips for fueling AI. Right now, the only limit on growth is how quickly it can meet demand.
Google antitrust trial crystallizes Apple’s risk 15 Nov 2023 Court testimony revealed that Alphabet’s search giant gives the iPhone maker 36% of ad revenue generated through its devices. The cost allows Google to argue it’s in a pay-to-play market. It also suggests that Apple and its shareholders have more to lose from the deal unwinding.
Alphabet and Robinhood split at rate fork in road 13 Nov 2023 The web search giant sold its stake in the online trading company as their shares head opposite ways. Google’s parent can thrive in a steady economy while Robinhood depends more on faster growth and high-yielding accounts. Elevated borrowing costs favor cash-generating tech.
Palantir’s mythology is far too precious 13 Nov 2023 The $40 bln data analysis company trades at 14 times revenue, a big premium to most peers despite generating only modest growth. It also has failed to demonstrate operating leverage to justify the AI exuberance. Moreover, some odd capital allocation choices warrant a discount.
Capital Calls: SoftBank 10 Nov 2023 Concise views on global finance: The Japanese conglomerate’s finance chief reckons its Vision Funds have ‘hit a bottom’. The firm’s broader surprise $6.2 bln quarterly loss, though, prompted shareholders to wipe 9% off the stock.
X’s rock-bottom leaves Elon Musk little to lose 6 Nov 2023 The Tesla CEO’s investment in the social network once known as Twitter swiftly lost a chunky amount of its $44 bln value. At this point, bold new ideas, such as an AI chatbot powered by user data, or crazier ones, make sense, even if they fail. Musk does well as an underdog.
Capital Calls: Paramount’s stricter streaming 3 Nov 2023 Concise views on global finance: The media stalwart’s shares popped 10% as boss Bob Bakish predicted that losses from its costly streaming push have topped out. But the company still faces a cutthroat market full of better-resourced rivals.
Capital Calls: CVC, Grocer wars, Atos 2 Nov 2023 Concise views on global finance: The European buyout group has postponed its plans to list in Amsterdam; British supermarket Sainsbury’s is thriving, which is bad news for rivals like CD&R-owned Morrisons; French IT firm Onepoint has grabbed a 10% stake in ailing peer Atos.
Meta tenuously clings to financial reality 26 Oct 2023 Facebook’s owner grew quarterly revenue 23% and vowed to keep expenses in check. AI investments and a planned hiring spree may yet run into an economic slump, however, and reverse an ad rebound. Only then will boss Mark Zuckerberg’s power of self-restraint become clear.
Worldline crash is pivotal moment for payments 25 Oct 2023 The $7 bln French group’s shares fell 60% after it said sales would be hit by a call to ditch riskier merchants. Investors expect payment providers to be on top of flaky transactions. The fact that a leading player has had to rethink will scare them, and alert regulators.
Capital Calls: Starboard vs. Murdoch 16 Oct 2023 Concise views on global finance: The investment fund wants the publisher of the Wall Street Journal to spin off its real estate assets a year after another activist agitated for a similar move.
Israel’s robust economy faces a major stress test 10 Oct 2023 The Middle East state’s thriving tech sector and strong institutions have helped it weather past security crises. Its latest one is much bigger, though. One key indicator will be whether foreign capital can retain its recent enthusiasm for investing in the $500 bln economy.
Fixing Intel ends with taking it apart 29 Sep 2023 The chip giant faces the existential challenge of regaining its lost lead in manufacturing. Doing so could double its $145 bln market value, but maintaining an edge requires ever more spending, fed by serving outside customers. The best way to do that: split Intel in two.
AI is making Meta virtually cool again 28 Sep 2023 Mark Zuckerberg talked up his $780 bln social media company’s artificial intelligence products at a developer conference. If they added as much value as Instagram, Meta could be worth $140 bln more. But Zuckerberg has to show he can monetize something he’s building from scratch.
Microsoft’s gaming M&A takes it to the next level 27 Sep 2023 The $2.4 trln group’s Activision deal has been picked at by regulators, and it’s exposed to consoles that may be upended by cloud gaming. Still, the $69 bln play diversifies Microsoft into mobile. And it leaves the group better placed to fight the industry’s content wars.
Capital Calls: Net neutrality is back, again 26 Sep 2023 Concise views on global finance: US regulators want to reopen a decade-old fight over the internet’s rules of the road. But just like merger cops who have struggled to gain traction, they are trying to use yesterday’s tools to predict tomorrow’s problems.
EU regulators have tech giants in their sights 26 Sep 2023 Brussels is taking on the likes of Amazon and Apple with a slew of new rules aimed at curbing market dominance and taking back control over data. Former EU Commission economist Bertin Martens explains to The Exchange podcast how the industry giants could be forced to open up.
Listing duo offers followers a cautious playbook 21 Sep 2023 Chip designer Arm and grocery delivery company Instacart have secured relatively successful stock launches, offering hope of a wider reopening of the IPO market. In this Viewsroom podcast, Breakingviews columnists explain how cornerstone investors and lowly valuations helped.
Alphabet’s glib but effective defense: Google it 13 Sep 2023 The tech giant dragged Microsoft, Apple and even Yahoo into its fight against US trustbusters. In response to the DOJ painting it as a predator, the $1.7 trln company’s lawyers said to just do a search on its site. The answer gets at the formidable competition it’s up against.
DOJ fights uphill battle; Google a losing one 12 Sep 2023 A trial kicked off that pits the search engine’s $1.7 trln owner against the US Department of Justice. Google gleans data freely given and has beaten other rivals. That makes the government’s case tough. By fighting it, though, the tech firm risks exposing its creepy reach.