Big Tech’s cash kings will resist rate-hike storm 12 Oct 2021 Rising U.S. Treasury yields reduce the value of future free cash flow, hurting fast-growing technology stocks. Apple, Facebook and Alphabet are minting money in the here and now. It’s investors in cash-challenged companies like Netflix and Tesla that will feel the most pain.
Emerson bets on improbable software upgrade 11 Oct 2021 Its $11 bln deal with AspenTech would leave the U.S conglomerate with greater exposure to fast-growing business software. But unless shareholders give the new company a much richer valuation, Emerson is getting out less than it’s putting in.
Capital Calls: Pet retail scrap, Chubb, Czech IPO 8 Oct 2021 Concise views on global finance: Buyout firm Hellman & Friedman matches EQT’s 3.4 bln euro bid for Germany’s Zooplus, putting the onus on its rival; the U.S. insurer buys the Asian assets of Cigna for $5.8 bln; haulage-fleet manager Eurowag makes a chaotic market debut.
French cloud IPO is a bet on EU tech sovereignty 5 Oct 2021 OVHcloud is listing in Paris for up to 3.7 bln euros. Slow growth and the tight grip of founder Octave Klaba justify the IT group’s low valuation. But sales could surge if European businesses and governments push to keep data at home rather than with Amazon, Google or Microsoft.
Trucker shortage turbocharges haulage payments IPO 28 Sep 2021 Eurowag has built a lucrative business planning routes and handling payments for haulage firms. A dearth of drivers makes it more important to minimise empty trucks. Even a top-gear 1.7 bln euro valuation leaves mileage for investors in the Czech company’s upcoming London float.
Capital Calls: U.S. debt, Hollywood, Blue Prism 28 Sep 2021 Concise views on global finance: Republicans have blocked additional federal borrowing, bringing a default closer; talent agencies CAA, ICM, and Endeavor take different strategic directions; private equity group Vista seems to be getting UK software group Blue Prism cheaply.
Intuit bites off a lot with $12 bln Mailchimp deal 14 Sep 2021 The TurboTax maker is paying 15 times 2020 sales for the digital marketing firm to better crack the big market for small business services. Mailchimp’s record suggests it has a shot. The trick will be to avoid indigestion as Intuit is still integrating an earlier $7 bln purchase.
Mini-Salesforce puts mighty multiple in $9 bln IPO 13 Sep 2021 Freshworks, founded in India, focuses on small firms overlooked by Marc Benioff’s giant. A gradual shift upmarket to companies like Sotheby’s helped it deliver 50% top-line growth. It is seeking a multiple twice as high as bigger peers. It’s possible Freshworks can justify it.
Smart specs are a solution in search of a problem 13 Sep 2021 Facebook and Apple are working on so-called augmented-reality glasses, the latest addition to an $81 bln wearable accessories market. Like watches, such gadgets help tech giants hoover up data and lock in customers. The hard part is convincing people they’re actually useful.
Elliott returns to haunt backsliding Citrix 9 Sep 2021 The investor sold out in 2020. Since then, the enterprise-software group's shares have slipped 25% despite a pandemic tailwind. Now Elliott is back with a stake worth more than $1 bln and a similar list of gripes. If it worked once, the rare activist double-dip could work again.
Chancellor: Tech growth comes at irrational price 9 Sep 2021 So overwhelming is the desire to find the next Alphabet, Amazon or Facebook that investors are giving nosebleed valuations to just about any software firm offering cloud-based services. The discount rates by which these enterprises are valued make no sense. Caveat speculator.
Capital Calls: AMC, German pet retailer 8 Sep 2021 Concise views on global finance: The movie theater chain enjoyed bumper Labor Day attendance; a trio of private equity suitors are circling Zooplus.
Capital Calls: UK interventions, Post-virus reset 7 Sep 2021 Concise views on global finance: U.S. bidder TransDigm’s withdrawal from the $8.7 bln race for Meggitt removes a tricky decision for the government; Boris Johnson’s new proposals will address social care but not generational wealth divides.
Electric vehicles will short-circuit car dealers 7 Sep 2021 Booming auto sales have buoyed shares in middlemen like $7.6 bln U.S.-based AutoNation and $357 mln UK-listed Pendragon. Battery rides need fewer parts and rely on over-the-air software updates. That’s great for carmakers but means dealerships risk becoming glorified garages.
VW-style tech hype calls for defensive driving 6 Sep 2021 CEO Herbert Diess says the “gamechanger” for his industry will be software and autonomous cars, with the former a $1.4 trln global market by 2030. Such a Panglossian take relies on fleets of robo-taxis and driver-downloads galore, plus manoeuvring past tech leaders like Alphabet.
Capital Calls: New York City is on climate notice 2 Sep 2021 Concise views on global finance: Cities with a higher number of wealthier residents will be able to combat climate related events.
South Korea’s app-store sandbox is worth watching 1 Sep 2021 A new bill stops Apple and Google from forcing local developers to use their payment systems, which carry hefty commissions. It’s good for the country’s tech champions, like the $60 bln Kakao. But it’s only worth copying elsewhere if users end up with cheaper or better services.
Xiaomi is primed to scale Mount Microchip 26 Aug 2021 The $82 bln Chinese company shipped 53 mln handsets in the second quarter, overtaking Apple to become the world’s No. 2 producer behind Samsung. With greater heft, boss Lei Jun’s ambitions in semiconductors should be within reach soon. Favourable policies from Beijing will help.
Dating outscores gaming in app store showdown 25 Aug 2021 A U.S. judge is considering an antitrust suit against Apple’s online shop as lawmakers pile pressure on the iPhone maker and rival Google. Despite games dominating their outlets’ $111 bln in annual sales, a cut in the tech giants’ 30% fee may boost daters like Match more.
Norton’s UK cyber raid yields risky bounty 11 Aug 2021 U.S. internet security firm NortonLifeLock has snapped up London-listed Avast for up to 6.2 billion pounds. The premium looks measly and cost savings meaty. But what appears to be a treasure trove for Norton CEO Vincent Pilette comes with long-term competitive threats.