Capital Calls: Charter and Altice 27 Feb 2024 Concise views on global finance: Tying up Charter, the cable giant backed by the media mogul, with rival Altice USA would form the country’s largest broadband player. That isn’t worth bearing the burden of regulatory hurdles, Altice’s mountain of debt, or its over-rich valuation.
Reddit loves users, so it’s giving itself a deal 26 Feb 2024 The social media firm plans to reserve IPO shares for loyal visitors, a tactic enlisted by the maker of Sam Adams beer and trading firm Robinhood. So-called “affinity programs” are risky, as Robinhood’s 2021 offering shows. But it may help Reddit get the valuation it wants.
Europe shares’ granola rush will become thin gruel 26 Feb 2024 The STOXX 600 Index has hit a record, but local funds are seeing outflows. As in the US a small bunch of companies – the so-called GRANOLAS group – are behind the good news. But in the Old Continent they’re more dependent on weak economic growth rather than the AI revolution.
Warner Bros Discovery makes case against media M&A 23 Feb 2024 The HBO owner’s first full year since the merger of Warner and Discovery was a grim one. Boss David Zaslav lived up to cost-cut goals but missed nearly everywhere else. Even well-run deals can’t stem industry woes, making future tie-ups - with, say, Paramount - look ill-advised.
Nvidia’s AI stronghold supports $3 trln valuation 21 Feb 2024 The chipmaker’s latest results support the frenzy that tripled its stock price in a year. Unlike other dubious beneficiaries of artificial intelligence hype, the $1.7 trln company’s grip on the market will be hard to wrest. It could soon be worth nearly twice as much again.
Alibaba is the ultimate contrarian China bet 21 Feb 2024 The $188 bln e-commerce group was once emblematic of the country’s growth and tech innovation. But over-expansion, regulatory crackdowns, and slowing consumption are forcing CEO Eddie Wu to perform a hard reset. Winning back investors requires Beijing to correct course too.
Cloudflare risks a lesson in giants’ AI advantage 16 Feb 2024 At 23 times expected sales, the $34 bln cybersecurity firm is one of the most richly valued software companies. Using its network to power AI holds promise, but enormous spending and the risk of being overshadowed by titans like Microsoft makes investors look overambitious.
Nvidia’s AI mini-bets set an example not to follow 15 Feb 2024 SoundHound AI shares surged 76% thanks to a $3.7 mln investment from the giant chipmaker. Not bad for a company likely to miss projections it set before going public in 2022. The colossal Nvidia will be fine even if SoundHound proves a dud. Coattail riders can’t say the same.
Capital Calls: Lyft 14 Feb 2024 Concise views on global finance: The US ride-hailing firm mistakenly forecast 500 basis points of margin improvement for 2024, causing its stock to surge some 60% before it came back to earth.
Peter Thiel’s latest bitcoin bet is a coronation 13 Feb 2024 The billionaire’s Founders Fund pocketed $1.8 bln in 2022 on crypto investments before dipping back in last fall. Bitcoin has since been anointed with an ETF and technology that furthers its use. The currency isn’t yet legitimate, but Thiel’s return marks its growing status.
Arm’s weirdly high valuation has legs 13 Feb 2024 The $150 bln chip designer’s shares have doubled since last week’s positive outlook. The good news supports a higher valuation, but Arm’s current level is excessive. Yet with a small free float and majority owner SoftBank unlikely to sell any time soon, it may stay in the clouds.
Sam Altman inflates one-man AI bubble 9 Feb 2024 The OpenAI chief wants to boost chip capacity to speed artificial intelligence, possibly raising $7 trln, the Wall Street Journal said. That’s what chipmakers might spend on factories in two decades - and would surpass previous investment booms. It’s mostly a gauge of AI hype.
Meta enters the dividend multiverse of madness 8 Feb 2024 The first payout from Facebook’s owner is a small $5 bln sign of financial restraint. Benefits from regularly returning cash to shareholders, however, are about as tangible as the metaverse. Zeal for dividends simply perpetuates inefficiency and irrationality in markets.
EU’s AI ambitions may fail on two fronts 8 Feb 2024 Brussels wants to set the global standard for artificial intelligence rules while helping Europe’s most promising startups to thrive. But its AI Act may be too fussy for others to copy, even as risks remain. And it will do little to help local champions take on US tech giants.
Capital Calls: Maersk, SoftBank, Adyen 8 Feb 2024 Concise views on global finance: The Danish shipping giant’s shares fell 14% after it missed expectations and warned of years of earnings pain; the Japanese investment firm posted its first net profit in five quarters; the Dutch payment company is slowly recovering.
Why tech giants will rake in AI’s big gains 6 Feb 2024 Amazon, Microsoft, Nvidia and Alphabet powered roughly 8% of 2023’s North American venture deals, largely in artificial intelligence. In this Exchange podcast, Altimeter Capital investor Apoorv Agrawal explains why these companies are reaping rewards from the latest tech craze.
Apple’s AI absence may be its advantage 1 Feb 2024 Microsoft and Alphabet pepper quarterly results with the promise of artificial intelligence. The $2.9 trln Apple barely mentions it. The risk is a giant missed opportunity. But its gadgets may indirectly benefit, and without the ballooning capital expenditure at peers like Meta.
Paytm’s smackdown has a full and final feel 1 Feb 2024 The payments bank of India’s top fintech has been barred by the regulator from receiving deposits. The reputational damage may prompt other lenders to pull back from working with the loss-making $6 bln company. It makes Warren Buffett’s recent painful exit look well-timed.
Alphabet may envy Microsoft’s AI Midas touch 31 Jan 2024 Massive expectations of how artificial intelligence will reshape technology have boosted both companies’ valuations. But comparing their latest results suggests the $3 trln software firm run by Satya Nadella is moving quicker and more decisively to turn its bets into gold.
Philips sees dim light at end of tortuous tunnel 29 Jan 2024 The $19 bln Dutch medical-kit maker faces a lengthy ban on selling ventilators in the US. Despite the hit, CEO Roy Jakobs is confident he can meet his business goals. Yet a possible fine, as well as litigation arising from faulty machines, will keep weighing on investors’ minds.