India’s tech stock bubble is poised to deflate 28 Dec 2021 Investors will continue to afford banks and consumer firms dizzying valuations but will increasingly give their money-losing digital brethren a shorter leash. Some mix of rampant competition, slowing user growth and rising data charges will crash the party for the startup crew.
Big Quit sends world’s back office back offshore 24 Dec 2021 When the pandemic fades, and along with it the stigma of letting people go, the WFH revolution will embolden global employers to move jobs to low-cost centres again. While that should benefit India’s IT services providers, they’re ironically grappling with similar problems.
Capital Calls: Enel’s payments punt 24 Dec 2021 Concise views on global finance: The 70 bln euro utility is paying up to 361 mln euros for a relatively pricey punt on fellow Italian payments firm Mooney.
The cult of revenue is flying in thin air 23 Dec 2021 Top-line growth is the surest way to create wealth. But Wall Street has taken a good idea too far. The price-to-sales ratio for tech IPOs is at a 20-year high, even as profitability is dangerously distant. The coming year may sort the durable Amazons from the hyped-up WeWorks.
Zuckerberg has metaverse rivals who mean business 23 Dec 2021 Meta Platforms and Epic Games are trumpeting visions of an immersive, 3D internet. But even ignoring the technological challenges, consumers’ appetite for full-on virtual socialising is uncertain. The corporate world is a more manageable target – and that is Microsoft’s domain.
Viewsroom: Some of our 2022 predictions, Part One 23 Dec 2021 Look for an end to the cult of revenue and another milestone for Microsoft. As net-zero efforts falter, investors ready a Plan B. Riyadh becomes strangely appealing. The World Cup pays dividends for the Gulf. And chips become Taiwan’s green calling card. Our columnists explain.
Tencent sets stage for empire tidy-up 23 Dec 2021 The Chinese giant is sitting on a $185 bln investment portfolio that confuses investors and might bother regulators. Its decision to return most of a $19 bln stake in e-commerce ally JD to shareholders makes strategic sense and is financially savvy. Other sales could follow.
Ant will be best among China’s BAD bunch 23 Dec 2021 After a brutal year for tech, ByteDance, Ant and Didi will spearhead the sector’s recovery. A shaky ad market looms for the restructured TikTok owner, however, while the ride-hailing company faces rising driver costs. Jack Ma’s fintech outfit has the clearest path ahead.
Delivery Hero U-turn shows bleaker times for tech 22 Dec 2021 The $28 bln food delivery group is leaving the German market after less than a year. However embarrassing, the move looks rational given the country’s cutthroat competition. Rising interest rates and more volatile markets mean loss-making companies need to keep investors sweet.
Capital Calls: Hedge fund fine 22 Dec 2021 Concise views on global finance: Britain’s FCA fines BlueCrest Capital 41 mln pounds, a third of the fund’s U.S. penalty.
China celebrity crackdown is tech’s horror show 21 Dec 2021 "Queen of livestreaming" Viya was fined $210 mln for tax evasion and had her social-media accounts shut. Investors wiped up to 12% off platform providers like Bilibili and Alibaba. The effect on the fast-growing $300 bln influencer market suggests that underestimates the risk.
Byju’s SPAC turns into India’s $48 bln IPO problem 20 Dec 2021 New Delhi is yet to allow companies to list directly overseas, so ed-tech star Byju’s is mulling a U.S. debut via a merger. Other startups will probably get creative too. It’s similar to the regulatory grey area that China’s tech giants exploited but are now paying the price for.
Data hunters will be Big Pharma’s next prey 20 Dec 2021 Drugmakers such as AstraZeneca spend $160 bln annually trying to unearth new treatments for diseases like cancer. The winners will be those who can source and analyse data quickly. That makes artificial intelligence experts like Relay Therapeutics and Exscientia targets.
Alibaba climate tide can lift valuation boat 20 Dec 2021 The e-commerce titan, whose market worth has halved this year, has unveiled bold 2030 carbon neutrality goals. Notably, it wants to widen the scope of consumer and merchant emissions it includes. Details will be key but longer term, the efforts could bolster shareholder returns.
KKR sends strong buy signal on European telecom 17 Dec 2021 The private equity firm is paying 1 bln euros for half of a Spanish fibre-optic network at a multiple of 22 times EBITDA. It already owns Madrid-based Masmovil, tilted at Dutch operator KPN in May and is stalking Telecom Italia. Eventually, public investors will get the message.
Reddit float feeds on meme stock craze 16 Dec 2021 The social network, long dwarfed by Facebook, has filed for an IPO. Retail traders have inflated user numbers and advertising revenue. Reddit might seek a $15 bln valuation, five times its worth three years ago. It needs to prove that a midlife resurgence won't become a crisis.
Byju’s SPAC deal is straight out of the textbook 16 Dec 2021 India’s edtech startup has an offer to go public at a $48 bln valuation. SPAC sponsor Michael Klein would invest in a private placement too, adding credibility to sales forecasts. Byju’s copies Grab’s deal outline, but growing U.S. revenue could help it fare better.
KKR can still find gems in Telecom Italia’s wreck 16 Dec 2021 Chopped into bits, the struggling Italian telecom operator may be worth 38 bln euros including debt. Its network alone, in which its U.S. stalker has a stake, is probably worth almost half that. A breakup may add a quarter to the fund’s 10.8 bln euro prospective offer.
China’s metaverse will be a tiny place 16 Dec 2021 Stocks in local companies associated with digital worlds blew up in 2021. The country’s video-games industry, tech expertise and masses of disaffected youth make it an ideal place to push the bleeding edge of virtual reality. That’s precisely why Beijing is squashing it.
SoftBank struggles to crack the SPAC formula 15 Dec 2021 Companies backed by the Japanese tech investor that went public using blank-check vehicles have had mostly disappointing results. Now that a SoftBank-sponsored SPAC has unveiled its first target, investors will find out whether Masayoshi Son’s team is a better buyer than seller.