IBM’s spinoff highlights problems, not value 4 Nov 2021 Shedding a gem of a business can reveal hidden worth, as Dell’s VMware exit showed. But IBM’s jettisoning of its declining $6 bln IT services unit is the opposite. It makes clear Big Blue’s larger problem: Its remaining businesses are challenged too.
Stablecoin watchdogs suffer from own complexity 2 Nov 2021 U.S. regulators want Congress to make issuers of dollar-linked tokens, such as Tether, toe the line like banks. Rules for digital assets could in various ways both legitimize and crimp them. But it’s a bewildering task, not helped by a similarly distributed system of regulation.
Capital Calls: KKR, Ferrari, HelloFresh 2 Nov 2021 Concise views on global finance: The private equity company is making the most of ideal market conditions; the Italian sports car maker raises its guidance; and a positive sales update turbocharges the German meal-kit delivery firm’s share price.
Chinese IPOs return to New York with a whimper 2 Nov 2021 LianBio, the first Chinese company to float in the city since Didi’s catastrophic listing, fell 14% on its debut. It touts a Cayman Islands domicile and U.S. backers but most of its business is in the People's Republic. Investors who once loved such hybrids distrust them now.
Capital Calls: Darktrace’s stock wobble 1 Nov 2021 Concise views on global finance: The UK cybersecurity group’s share plunge reflects both short- and longer-term problems.
Deal crackdowns boost buyers without baggage 29 Oct 2021 U.S. merger watchdog Lina Khan is stepping up promises to thwart serial acquirers’ deal ambitions. What’s bad for the industry titans in the crosshairs, though, could be a boon for buyout barons and lawyers dreaming up novel ways to deal with the roadblocks.
Facebook rebrand more Altria than Alphabet 28 Oct 2021 The tech giant will call itself Meta, to reflect Mark Zuckerberg’s focus on creating a “metaverse” blending immersive virtual experiences with reality. Delivering the many technologies needed may take decades. For today, the rebrand just applies gauze to a tarnished name.
Amazon’s secret weapon: Gen Z 28 Oct 2021 The e-commerce giant is becoming a bigger marketing threat to Google and Facebook. Quarterly ad sales grew by 50%, while attracting plenty of teenage and young adult shoppers. That augurs a promising future. It also makes social issues like worker treatment even more important.
Apple has the most growth fuel in hand 28 Oct 2021 The $2.5 trln iPhone maker spends much less of its revenue on R&D than its Big Tech peers. Boss Tim Cook not only keeps organic growth efficient, he also avoids splurging on M&A. Investment is edging upward, but the spare capacity is one reason Apple looks relatively cheap.
Sony seizes best of hardware and software worlds 28 Oct 2021 Sales of PlayStation consoles and other consumer electronics helped power quarterly sales to $21 bln. Games, music and movies shone too, as boss Kenichiro Yoshida doubles down on content. Even better for investors, a more cohesive strategy linking the different units is emerging.
Capital Calls: Aussie climate plan stumbles 28 Oct 2021 Concise views on global finance: The federal government won’t sign a pledge to reduce methane emissions.
Rogers board fight puts public shareholders last 27 Oct 2021 A squabble over who is running Canada’s largest wireless carrier is the latest intrigue in an industry defined by dynastic politicking. While it makes for good drama, Canada’s family-controlled telecom giants have helped create a market that is among the world’s most expensive.
Swiss bank-tech buyout would hit returns glitch 27 Oct 2021 Private equity firm EQT may bid for $10 bln software group Temenos. The Geneva-based outfit should gain from banks outsourcing more IT to specialists. Yet a deal would need a large chunk of equity, and making the numbers work in an increasingly competitive sector could be tricky.
Capital Calls: McDonald’s, GM, Worldline 27 Oct 2021 Concise views on global finance: The $177 bln fast-food chain boosted sales by making it easier to get burgers and nuggets; supply shortages are exacerbating the carmaker’s heavy investment bill; shares in the French payments group tumbled despite ambitious growth targets.
Google antitrust boogeyman is lurking in the wings 26 Oct 2021 Parent Alphabet’s quarterly revenue rose 41% and its stock has outperformed rivals. U.S. political anger is fixated on Facebook, but the search engine is more exposed in regulatory probes. A lawsuit revealing evidence of anti-competitive behavior is a reminder of the threat.
Microsoft revs up for return to office 26 Oct 2021 The $2.3 trln software giant benefited from work from home in the past quarter as cloud and PC software sales boomed. Spending on IT is shifting focus, but not letting up. Microsoft’s scale, the fact it’s not Amazon, and rising security awareness set it up for continued growth.
Mark Zuckerberg’s dive into metaverse misses mark 26 Oct 2021 Alongside quarterly results, Facebook said it would start reporting more financial details on its virtual reality initiatives and beyond. Any extra clarity is welcome, but the structural changes sidestep all-important Instagram. It’s a bad time to be hiding behind the headset.
Facebook black box is overdue for cracking open 25 Oct 2021 Waning ad growth and slowing adoption by young users suggest investors deserve more clarity, starting with disclosure of Instagram’s numbers. Revelations about how Facebook polices content demand transparency too. Mark Zuckerberg’s $915 bln empire could help itself by opening up.
Frankenstein’s watchdog can tame Big Tech monster 25 Oct 2021 Combining FCC-style oversight of U.S. broadcast stations with the OCC’s supervision of banks and FDA’s drug vetting could bring needed policing to firms like Facebook. Being regulated by an uber monitor is a nuisance. But it isn’t unprecedented and may even diffuse some vitriol.
Gerson Lehrman IPO “edge” is it doesn’t have one 22 Oct 2021 Linking investors eager for insight with industry insiders is lucrative. Gross margins over 70% look ripe for rival expert networks to eat. GLG's emphasis on compliance after an insider-trading scandal, however, makes it look like a safe source of validation for clients.