Amazon rides cloud to value bigger than Wal-Mart 23 Jul 2015 Investors cheered as Jeff Bezos’ burgeoning web services business helped Q2 sales grow 20 pct. Flat capex meant free cash flow ballooned despite wafer-thin profit margins. Amazon, now the world’s most valuable retailer at $264 bln, just has to live up to its potential.
Apple has time on its side 21 Jul 2015 The iPhone’s frenetic Chinese growth powered a 33 pct rise in revenue. Marginally softened forecasts for the next few months nevertheless knocked $50 bln off Apple’s value. Minimal information about Watch sales also disappointed. A little patience, however, will go a long way.
KKR’s First Data charges into tech-ier second life 21 Jul 2015 Its turnaround on track, the U.S. payments processor filed for an IPO eight years after its LBO. The equity value may reach $20 bln, bringing private equity owners a modest profit despite overpaying. The credit card pioneer’s challenge, though, is to be disruptor – not disrupted.
Google’s new CFO recalibrates investment algorithm 16 Jul 2015 Ruth Porat uttered a few words about capital discipline to accompany solid quarterly results. Fears over profit bummers, R&D moon-shots and Facebook’s mobile prowess quickly ebbed, as Google’s market value leapt by $40 bln. It’s a high new standard for boss Larry Page to honor.
Micron would be a less-than-fab deal for China 14 Jul 2015 A state-backed group is reportedly eyeing a record $23 bln bid for the U.S. memory-chip maker. Beijing is already building a standalone semiconductor industry via smaller takeovers. But completing this deal, and getting the most out of the acquired business, will be much harder.
Uber’s French lesson: disruption has limits 3 Jul 2015 The upstart taxi app has suspended its service in France after a fortnight in which it was the target of violence. Two executives were also detained. Uber’s truculent approach has driven growth. But agents of renewal sometimes have to work with the status quo to change it.
China pours cold water on Xiaomi’s growth 3 Jul 2015 Falling sales over the past six months come as a nasty shock from a handset maker that commanded a $45 bln valuation just months ago. Xiaomi is grappling with a slowing home market and competitors catching up. China’s tech prodigy will have to look elsewhere for opportunities.
Ousted CEO shows risks of SoftBank startup splurge 2 Jul 2015 Indian property site Housing.com has fired founder Rahul Yadav six months after the Japanese conglomerate became its largest shareholder. The 26 year-old was a liability and had to go. Still, it’s a reminder of the perils of listed companies making venture capital investments.
Sony tests popularity with "selfie" capital hike 1 Jul 2015 Selling $3.6 bln of shares and convertible bonds is punchy after years of destroying value. But Sony is back in favour with investors. Plus, it has a weak balance sheet and a growth business to fund: sensors for the pin-sharp cameras that go front and back on today’s smartphones.
Apple marching to the drum of its own Beats 30 Jun 2015 The company’s new subscription music streaming and online radio services could upend markets dominated by Pandora, Spotify and SiriusXM. Their combined annual revenue of $6.4 bln would be equaled by just 6 pct growth in iPhone sales. The hardware angle sets Apple’s effort apart.
Rob Cox: Uber gets a pass on its Wall Street habit 30 Jun 2015 Big banks break rules and pay fines. Traditionally it’s just a cost of doing business. Uber, meanwhile, pays fines when drivers violate regulations that stand in the way of its business model. Nowadays banks attract outrage, but Uber is often forgiven in the name of disruption.
China taxi apps speed towards subsidy showdown 29 Jun 2015 Local taxi-hailing app Didi Kuaidi is raising up to $2 bln less than a month after rival Uber said it will invest $1 bln in the People’s Republic. Both are racing for market share by spending heavily on subsidies for drivers. The question is whose investors lose patience first.
WeWork stretches sharing-economy valuations 26 Jun 2015 The groovy provider of office space - and beer - to millennial workers is now worth $10 bln after its latest funding round, doubling in just six months. WeWork is growing fast, but based on established rivals’ metrics earnings would need to jump 15-fold to justify that price tag.
Tencent dredges Hong Kong’s murky depths 24 Jun 2015 The tech giant is buying into Mascotte, an HK investment group mainly notable for a disastrous solar-materials acquisition. Financially, the $97 mln deal hardly matters for the $191 bln Tencent. But off-topic, unexplained moves like this should concern outside shareholders.
China’s biggest U.S. buyout faces search for funds 22 Jun 2015 Qihoo 360 may become the largest Chinese company to flee foreign markets. But first the antivirus group’s bosses need at least $6 bln to buy out other shareholders. Banks might lend half - or more, if mainland lenders feel generous. Finding billions in new equity may be harder.
PayPal’s post-partum future will eclipse eBay’s 18 Jun 2015 The common perception is eBay is an online auctions business with an attached payments operation. The opposite is true. PayPal’s standalone business is far more promising – and bigger, too. It may eventually be worth four times as much as the auction unit once they’re separated.
Uber skid flashes hazard-lights at sharing economy 17 Jun 2015 A California labor agency says the ride-hailing service’s drivers are employees not contractors. A U.S. judge sounds open to the idea, too. It’s a serious warning sign for backers of TaskRabbit and other Uber-like business models. The added costs would disrupt these disruptors.
Wall Street lead over EU banks looks set in stone 16 Jun 2015 European trading and advisory revenue is down 30 pct since 2010 while U.S. investment banking has grown. Now Deutsche Bank and HSBC are cutting further, even more ground will be ceded. The region’s tentative recovery and capital markets project offer only slim hope of a reversal.
Maybe Twitter’s next CEO will be Larry Page 11 Jun 2015 Co-founder and Chairman Jack Dorsey will run the $23 bln micro-blogging company until a replacement for Dick Costolo is found. Leadership turmoil has plagued Twitter for years and impeded its growth. The time is ripe for a buyer to charge in. Google is one good candidate.
Salesforce CEO decides he deserves his pay 10 Jun 2015 An advisory vote approving the cloud software company’s executive pay passed narrowly, with founder and boss Marc Benioff’s 6.5 pct stake more than accounting for the majority. Investor ire, despite stock gains, suggests compensation at the $47 bln Salesforce is out of whack.