Capital Calls: Sarkozy’s trial 1 March 2021 Concise views on global finance in the Covid-19 era: the former French prime minister’s conviction for trying to bribe a judge creates a new dilemma for the companies on whose board he sits, including hotel chain Accor.
Capital Calls: Walmart, Buffett/Chevron 18 February 2021 Concise views on global finance in the Covid-19 era: Walmart gets an unfair ding from investors over its latest earnings report; and the Sage of Omaha takes another bet on the profit still to be made from fossil fuels.
Europe’s payments king faces fight to keep throne 10 February 2021 Netherlands-based Adyen is one of the region’s few successful listed fintechs, giving it scarcity appeal. Its reliance on large customers like Facebook could one day be a problem, and competition in the bloc is hotting up. A rich $76 bln valuation leaves little room for error.
SoftBank asset gains push focus to its firepower 8 February 2021 Markets have been kind to Masayoshi Son, helping the Japanese firm he leads log big gains from revaluations. Shares have hit a 20-year high. A bigger commitment to buybacks and detailed plans for its $42 bln-and-growing cash pile could provide a lift beyond the current frenzy.
Alphabet risks losing sight of ABCs of search 2 February 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 February 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.
Facebook has little to fear but itself 27 January 2021 Everything was thrown at the $800 bln social network in the last year, from an ad boycott to antitrust lawsuits. Mark Zuckerberg’s business still posted a 33% jump in quarterly revenue. Regulatory pressure is rising, but the greatest danger for Facebook may be getting distracted.
ByteDance casts shadow over rival Kuaishou’s IPO 25 January 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.
Google threat demands that Australia find allies 22 January 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.
German used-car IPO tests investor haggling skills 13 January 2021 SoftBank-backed Auto1 is dragging the backstreet business into cyberspace. The question is whether CEO Christian Bertermann deserves a technology-style valuation for selling second-hand rides online. Thin margins suggest a mooted valuation of up to 8 billion euros is ambitious.
Sea can pass on Southeast Asian deal frenzy 12 January 2021 The region’s hot tech companies, Tokopedia, Grab and Gojek, are mulling consolidation. Any of them could be swallowed by Singapore’s $106 bln gaming-to-shopping giant Sea which has a war chest of cash and rich stock. But boss Forrest Li has good reason to sit back.
Trump shows individuals’ worth to social networks 11 January 2021 Twitter permanently banned U.S. President Donald Trump’s account, citing the risk of further incitement of violence. That vaporized 10% of the company’s market capitalization. But as Kylie Jenner showed at Snap, social media groups are about more than any one person.
The Franken-economy that will thrive post-pandemic 24 December 2020 The ideal nation to emerge from Covid-19 has South Korea’s superb internet connections and technology know-how. Like Singapore, robots are widely used in industry. And it boasts skilled workers to rival Switzerland, sells high-value exports to China, and leads on green energy.
Corona Capital: Holiday Zoom 18 December 2020 Concise views on the pandemic’s corporate and financial fallout: The video call company is removing the 40-minute time limit on free calls for the holidays – a gift it can easily afford, and one that may not be appreciated.
Corona Capital: New York City, Fed/climate change 15 December 2020 Concise views on the pandemic’s corporate and financial fallout: New York City’s exodus puts local government in a tight spot; the Fed’s belated move shows a change in Washington.
Pinduoduo rises to China’s grocery challenge 30 November 2020 The e-commerce company unveiled plans to raise as much as $6.1 bln to expand in fresh food. Competition is fierce and building out logistics will be costly, but its model of matching farmers to shoppers gives it an edge. And boss Chen Lei has successful experience as an underdog.
Corona Capital: Tiffany, Biden, Vaccines, Cash box 24 November 2020 Concise views on the pandemic’s corporate and financial fallout: The cut-price jeweller issues less-than-sparkling results; the U.S. president-elect gets to start tackling the pandemic; Russia touts its discount vaccine; and UK firms gorge on shareholder-unfriendly equity issues.
BuzzFeed draws Verizon exit map for dying brands 19 November 2020 The digital media firm is merging with once-hot HuffPost, and getting cash from the latter’s telecom-giant owner in the process. The deal is tiny for Verizon, which ends up with a minority stake in BuzzFeed. Yet it could be a template for a bigger clear-out of Yahoo and AOL.
Corona Capital: Home Depot 17 November 2020 Concise views on the pandemic’s corporate and financial fallout: Home Depot will benefit as DIYers move inside.
Corona Capital: Lyft, Vaccine minefield, Peru 11 November 2020 Concise views on the pandemic’s corporate and financial fallout: The U.S. ride-hailing company is tempted by food delivery; Pfizer could face high demand for its coronavirus vaccine; and Peru gets another leadership shuffle just as Covid-19 cases soar.