Snap’s boss destroys $43 bln in a snap 26 Jul 2023 Despite a bad quarter, revenue has grown faster than rival Meta's since the messaging-app’s 2017 IPO. If boss Evan Spiegel had met minimum return expectations, shares would be worth 4 times more. Now is the time to rethink Snap’s future. Too bad shareholders have no control.
Alphabet pins growth hopes to a cloud 25 Jul 2023 The $1.5 trln Google parent’s results beat expectations, led by gangbusters expansion at its cloud business. Though still in third place to Amazon and Microsoft, investing in that unit could be a way to offset risks looming over the company’s core advertising operation.
Microsoft’s AI hype arrives faster than revenue 25 Jul 2023 The tech giant’s stock is up nearly 50% this year, as investors slap a higher, artificial intelligence-inspired multiple on earnings. But quarterly results show AI only just starting to edge up cloud revenue. Boosters are taking the easy path of penciling in extraordinary growth.
Verizon’s frequency ducks rivals’ interference 25 Jul 2023 The $144 bln telecom giant unexpectedly added a lucrative set of subscribers this quarter. Focus on areas less pressured by rising cable rivals shines through fierce competitive intensity. That makes its coveted dividend safer than competitor AT&T's.
Capital Calls: Biotech alarm, Spotify’s tightrope 25 Jul 2023 Concise views on global finance: Pharma supplier Danaher’s reduced forecast contrasts biotech doldrums against broader market exuberance, in a warning sign for investors; the Swedish music streamer is caught between margin-hungry investors and music labels.
Capital Calls: European steel 21 Jul 2023 Concise views on global finance: Sweden’s $6 bln group SSAB misses profit forecasts as Europe’s demand tanks and steel prices shrink.
Amazon-EU web content spat is all about grey areas 20 Jul 2023 The $1.4 trln e-commerce giant is fighting Brussels’ decision to class it as a large online platform and hence face extra scrutiny. Given its size, Amazon’s challenge at first looks like a long shot. Yet the legislation’s vague language creates scope for disputes.
AT&T is another corporate elder aging ungracefully 19 Jul 2023 The telecom’s stock hit 30-year lows over liability fears from decades-old lead-lined cables. As with J&J now or oil giants tomorrow, over-the-hill corporate titans have the time to accumulate opaque environmental and legal liabilities that are often ignored, until they can’t be.
Capital Calls: Cathay, Telecoms kit makers, Byju’s 14 Jul 2023 Concise views on global finance: The Hong Kong carrier expects to turn a profit; a push into 5G has caught European telecoms gear makers like Nokia and Ericsson short; India’s troubled ed-tech giant appoints a top former banker to a newly formed advisory council.
Winklevoss twins take strike two with crypto hype 11 Jul 2023 The founding brothers of crypto investment firm Gemini are suing the parent of bankrupt crypto lender Genesis over a soured deal that led to almost $1 bln in losses. The twins, known for their spat with Meta’s Mark Zuckerberg, are a bellwether of another messy tech hype cycle.
Capital Calls: Uber’s new task 11 Jul 2023 Concise views on global finance: Under boss Dara Khosrowshahi, the company’s departing finance chief helped deliver Uber’s original vision of dominating ride-hailing. His replacement can finish the job by dialing back spending and opening a spigot of cash flow.
3D-printing takeover battle misses third dimension 10 Jul 2023 Nano Dimension raised its unsolicited bid to buy control of $1.3 bln Stratasys, making the choice for shareholders tougher. The target’s preferred deal with Desktop Metal partly hinges on elusive revenue synergies. A snubbed offer from 3D Systems may ultimately be the best option.
Higher rates encourage more picking at carcasses 10 Jul 2023 SVB Financial is suing regulators to recoup $1.9 bln in cash. The sum would generate $100 mln in interest, four times what it would have earned a year ago. Without that, SVB may need pricier rescue funds. Higher rates make cash worth a fight, especially at failed companies.
Meta’s Threads isn’t worth 11 Twitters 7 Jul 2023 The social media company’s market capitalization has ballooned $500 bln since Elon Musk bought its smaller competitor for $44 billion. Measures boss Mark Zuckerberg has taken are helping. But even if he puts Twitter out of business, Meta has already received the benefit.
AI hype embellishes Il Makiage IPO 6 Jul 2023 It’s a good time for Oddity Tech, the fast-growing makeup brand’s owner, to highlight its machine learning algorithms for new investors. These features should help put a dewy finish on a $1.5 bln valuation from January 2022. In time, however, the techy gloss will fade away.
Embracer cash call undermines investors’ M&A play 6 Jul 2023 The Swedish gaming group raised $180 mln from various investors at a 9% discount to its closing price. Last summer, it raised $1.1 bln from Saudi Arabia at a 15% premium. The contrast suggests a lower chance of a takeover, meaning CEO Lars Wingefors faces a single-player slog.
Meta’s Twitter experiment is a long shot 5 Jul 2023 Now is the time for Mark Zuckerberg’s $730 bln social media behemoth to steal users from Musk’s network. And Meta has successfully ripped off ideas. But gaining users won’t move the needle on Meta’s massive base. Plus even before Musk, Twitter didn’t have a viable business model.
India can aim lower in its chip dreams 5 Jul 2023 Despite offering $10 bln in subsidies, the country has only managed to attract Micron to build a less-advanced factory. Even so, the chance to grab share from China in the commoditised but vital low-tech chips market could pay off amid booming demand and geopolitical tensions.
Alphabet threats show up everywhere but its shares 29 Jun 2023 The Google-owner’s valuation has powered ahead as it touts its prowess in artificial intelligence, in spite of mounting menaces. A report questioning Google's video ad sales compounds ongoing antitrust threats, and even AI might not be an unalloyed good.
AI’s deflationary winds will blow away profits 27 Jun 2023 Artificial intelligence could add $8 trln a year to world GDP, McKinsey estimates, defying the gloom about robots replacing humans. Though companies should benefit from lower costs, consumers could use the technology to find better deals. It all adds up to lower prices.