Technology

Lyft’s new $1 bln of cash spells gains over Uber

19 October 2017

The ride-hailing app has secured new funding led by Alphabet and a nearly 50 pct valuation increase. Its larger rival is struggling to regain momentum and is close to a down-round investment from SoftBank. Uber has the scale, but Lyft’s less aggressive approach is paying off.

Exchange Podcast: Scott Galloway

19 October 2017

The NYU marketing guru swung by Times Square to discuss what's next for "The Four" tech behemoths - Google, Apple, Amazon and Facebook. Among his predictions: one of them will be hit with a $10 bln-plus antitrust fine and Amazon will choose New York for its second headquarters.

HP Enterprise shows breakups can fail to shine

19 October 2017

Activists often prod companies to hive off promising businesses from boring cash cows. HP’s split shows the distinction isn’t always clear. The “exciting” servers and networking offshoot is returning more capital as expansion stalls while growth stirs at the PC and printer outfit.

PayPal’s future rests on striking quadruple whammy

19 October 2017

The $80 bln payments firm is worth as much as Amex and has a higher multiple than Visa or MasterCard. Justifying that means renewing its deal with ex-owner eBay, nailing lending and expanding its popular Venmo app to merchants. For now, PayPal looks well-positioned to succeed.

ICOs validate old-school “follow the money” mantra

19 October 2017

One of the biggest so-called initial coin offerings to date, $230 mln for what are known as tezzies, has led to a spat between its architects and a Swiss foundation that controls the digital cash. Where crowd-funding and crypto-currencies meet IPOs, traditional motivations apply.

iPhone boost is prelude to bumper year for TSMC

19 October 2017

Quarterly results show the leading contract chipmaker recovering after a lacklustre first half, aided by Apple's new iPhones. TSMC's next task is to gain a lead in a new generation of even smaller semiconductors. It looks well positioned to stay ahead of emerging rival Samsung.

Qudian IPO feeds debt-hungry Chinese millennials

18 October 2017

The online lender backed by e-commerce giant Alibaba’s financial arm has priced its U.S. listing above expectations, says Reuters. It boasts fast growth, low defaults and - shockingly for tech - profitability. As young Chinese shoppers rack up debt, Qudian will keep earning.

China’s iQiyi is like Netflix with extra challenges

17 October 2017

The Chinese video-streaming service is eyeing a debut on U.S. markets next year and already inviting comparisons to its American partner. Both are burning cash on new content to lure fans. Fickle consumers and limited appeal abroad stand in the way of a $10 bln-plus valuation.

Netflix valuation outstrips burgeoning opportunity

16 October 2017

The $86 bln video-streaming service hit an all-time high after Comcast and AT&T warned of a fall in subscribers. Pay-TV customers cutting the cord should mean more viewers for Netflix. But even that and a recent fee hike don’t justify the firm trading at a sky-high multiple.

Toshiba chips let Bain surf a Big Data wave

16 October 2017

A group led by Bain is paying $18 bln for Toshiba’s flash-memory unit after a drawn-out sale. The memory industry is cyclical and capital-intensive, and it's also in China’s strategic crosshairs. But a rising tide of demand for bytes will lift Bain's boat first.

Warning signs flash at Samsung after big quarter

13 October 2017

The tech group's top executive unexpectedly resigned following record-smashing forecasts for operating profit. An early lead in memory chips has fuelled blistering earnings growth at Samsung despite legal woes. But as rivals circle, a widening leadership vacuum looks worrying.

Viewsroom: Activists keep the fight alive

12 October 2017

Nelson Peltz narrowly lost his acrimonious bid for a P&G board seat. Honeywell’s decision to spin off two small units was less than Dan Loeb lobbied for. These are temporary setbacks. Past experience and their financial firepower make shareholder activists a powerful force.

Facebook could do with more Sheryl Sandberg

12 October 2017

Mark Zuckerberg's right-hand woman deftly fielded questions about Russia-backed ads and the social network's broader role in society. It was a notable contrast to the bumbling way her boss handles the limelight. Sandberg may be better placed to oversee Facebook's next phase.

KKR sets a collision course with Elliott in Japan

12 October 2017

The buyout firm raised its bid for a Hitachi subsidiary, offering outside investors $1.3 bln. That price might not satisfy activist shareholder Elliott. KKR may need to sweeten the deal, within reason - its reputation in Tokyo for disciplined buying is worth preserving.

Beijing’s closer embrace is bad news for Big Tech

12 October 2017

China wants stakes and board seats at web giants like Tencent, the WSJ says. Beijing is already influential behind the scenes in technology, and given its tightening grip elsewhere, a power grab in this vital sector was all but inevitable. This will nonetheless cost investors.

Honeywell puts Dan Loeb in his place

10 October 2017

The conglomerate is spinning off two small, low-margin risky businesses rather than the aerospace unit the activist had targeted. It’s a smarter way for new CEO Darius Adamczyk to improve returns without much pain, especially on top of the better margins he’s already producing.

New Ericsson chair half-solves governance problems

9 October 2017

Ronnie Leten had a successful eight-year run at Atlas Copco. His arrival as chairman of the embattled Swedish telecom group will help make up for the CEO’s relative lack of experience. But both men’s links to long-term shareholder Investor AB make a radical overhaul less likely.

China’s oil giants brace for electric car crash

9 October 2017

Beijing's move against gasoline means tough times ahead for the country's oil majors. The rapid push into new energy vehicles will curb demand for imported hydrocarbons, but at the expense of state giants like Sinopec and PetroChina. It might also pressure crude prices.

Server-farm growth fuels hot IPO mumbo jumbo

6 October 2017

Rocketing data-storage demand is creating winners – witness the 46 pct rise in Switch in its first day of trading. It also encourages silliness such as the company crediting its performance on CEO and “inventrepreneur” Rob Roy’s practice of “Switchful Thinking.”

Buyout giants break through the ice in Japan

6 October 2017

Western private equity firms are no longer getting a frosty reception in Tokyo. Bain’s $18 bln deal for Toshiba’s chip unit is a special case, but rival KKR has notched up big deals with Nissan, Hitachi and Panasonic. Patience helps. So does a sense of crisis among sellers.