Singapore’s Grab cashes up for a bigger taxi fight 2 Aug 2018 The ride-hailing firm won one battle when it pushed U.S. giant Uber out of Southeast Asia. Much of its latest $1 bln funding round will be spent in Indonesia, where Grab is up against local rival Go-Jek. That country is where the region's tech landgrabs will be won or lost.
China’s prickly new watchdog can hit at home too 2 Aug 2018 Fresh from its role in torpedoing Qualcomm’s $44 bln NXP bid, Beijing’s all-in-one consumer regulator is now investigating the newly-listed Pinduoduo over fake goods, sending the stock down 10 pct. China has built a powerful champion: investors are right to be afraid.
Google’s China re-entry plan looks evil and risky 2 Aug 2018 The internet giant is planning a censored search engine for China, The Intercept reports. Taking share from local champions like Baidu could prove profitable. But Beijing wants to get its hands on Google's AI expertise. Morality aside, a return would be dangerous business.
Apple both is and isn’t already a $1 trln company 1 Aug 2018 It’s a tantalizing number, but it’s just that. If the iPhone maker hadn’t bought back so much stock, its market capitalization would have reached 13 digits long ago. Then again, stripping out its cash to value the business alone, there’s still some way to go.
GE put a little too much imagination to work 1 Aug 2018 The shrinking conglomerate may offload parts of its digital business. GE had targeted some $15 bln of revenue by 2020 on the back of the Predix software initiative, and a CFO once dangled the idea of “infinite returns.” It’s a sobering moment for the internet-of-things hype.
Baidu’s core strength exercise is underappreciated 1 Aug 2018 The $85 bln Chinese search giant delivered 45 pct earnings growth last quarter, having shed a few distractions. The market is still cautious on Robin Li’s big AI plan as economic headwinds loom. But applying machine learning to content delivery - and censorship – should pay off.
Privacy builds a wider moat for Apple’s margins 31 Jul 2018 The iPhone maker’s premium prices and fast-growing services powered earnings in the latest quarter. Selling hardware rather than advertising once seemed like a weakness. But in the wake of Facebook’s woes, CEO Tim Cook is using data security to buff the brand – and profitability.
Asian videogame giant gives away online store 31 Jul 2018 Tencent-backed Sea, at $4.5 bln, trades at a 50 pct discount to the sum of its three parts, Breakingviews calculates. Investors essentially get the Shopee e-commerce business for free. With Alibaba-owned Lazada a big rival in Indonesia, the valuation gap may prove hard to close.
Twitter purges users and shareholders alike 27 Jul 2018 The social network’s efforts to reduce spam, fake users and toxicity shrank active monthly users. Investors fled as well. That leaves both the platform and valuation more salubrious. Healthy returns will now depend on finding growth.
Pinduoduo polishes New York’s tech IPO crown 27 Jul 2018 The shopping app’s shares rose 40 pct in their U.S. debut, valuing it at $34 bln. New York has lost some marquee China tech floats to Hong Kong of late, but those it won have mostly outperformed Fragrant Harbour debutants. The Big Apple is still the host with the most.
Amazon’s growth is leaving the shop behind 26 Jul 2018 Jeff Bezos's outfit gets only about half its revenue from its online stores, down from two-thirds two years ago. E-commerce is growing, but the businesses Amazon has built around it are expanding faster and producing much more profit. That makes its valuation a little less crazy.
Viewsroom: Sergio Marchionne’s legacy 26 Jul 2018 The sudden death of Fiat Chrysler’s CEO has robbed the car industry of one of its most colorful – and successful – leaders. Antony Currie, Rob Cox and Lisa Jucca look back over his 14 years at the wheel and discuss what’s on the road ahead for his successor Mike Manley.
New Facebook pessimism overshoots reality 26 Jul 2018 Forecasts of reduced growth and margins wiped nearly 20 pct, or about $120 bln, off the social network’s valuation. That’s an astonishing hit. Investors now implicitly expect growth to be run-of-the-mill within a few years. That’s replacing excessive optimism with undue glumness.
Investors hit brakes on record-high Facebook 25 Jul 2018 The social network’s stock closed at a new top on Wednesday, valuing it at $630 bln. Then came a sharp after-hours slide following earnings. Fake-news scandals, potential regulation and Mark Zuckerberg’s tin ear all raise big questions. The news feed could get a lot worse.
Qualcomm is set to pitch life without NXP 25 Jul 2018 The $90 bln chipmaker’s $44 bln purchase of its rival could die on Wednesday unless Beijing gives it an 11th-hour nod. Traders seem to think that’s unlikely. Going it alone won’t be easy for Qualcomm, but in the 21 months since striking the NXP deal it has not stood still.
GM’s Mary Barra has a new yardstick 25 Jul 2018 The carmaker’s decent earnings seem to justify its CEO’s decision to eschew a big merger, sell GM’s Europe unit and focus on electric and autonomous cars. But Opel’s rapid recovery under new owner Peugeot could return to haunt Barra if her Autos 2.0 strategy careers off the road.
Facebook and Twitter are lucrative quagmires 24 Jul 2018 Bosses Mark Zuckerberg and Jack Dorsey are under fire for allowing misinformation and bullying to flourish on their social networks. Lawmakers and users are beginning to notice, but advertisers have a higher tolerance – and that’s what keeps the swamp bubbling.
Japan’s $11 bln Line treads a very fine one 24 Jul 2018 The chat app’s shares have bounced around since its 2016 IPO as user growth proves elusive. Line bumbled its way from ride-hailing to music-streaming, and is now aiming at fintech. It’s a promising market, but trading at over 100 times earnings leaves little room for error.
Europe can’t stop Alphabet profit machine 23 Jul 2018 Regulators and lawmakers have tried to throw sand in the gears of the internet goliath, but blowout quarterly figures show Google’s parent is in a strong position. Europe will need more than stringent data rules, giant fines, and hearings to slow the $827 bln company’s growth.
Atos picks good second best with $3.4 bln U.S. buy 23 Jul 2018 The French group is purchasing IT outsourcer Syntel after missing out last year on European peer Gemalto. Its original target was a more logical fit but the transatlantic deal gives Atos an entry pass to its new target’s U.S. bank clients and will create value after a few years.