America’s new China curbs eschew scale for smarts 10 Aug 2023 The Biden administration’s plan for screening US investments in the People’s Republic is not the wide-ranging proscription many expected. It targets only a handful of deals, would ban even fewer and isn’t retroactive. That’s a relief for most investors – and for diplomacy, too.
Capital Calls: Italian bank levy flip-flop 9 Aug 2023 Concise views on global finance: Rome has only partially soothed investors panicking over its windfall tax on lenders.
Byju’s blowup makes its investors look bad 7 Aug 2023 The Indian edtech startup is wrestling with lenders over a $1 bln loan, and a US hedge fund is forcing changes at a prized asset. Investors Prosus and Peak, formerly part of Sequoia, quit the board, but as the situation worsens so does the mark against those who propped it up.
Adland consumer-goods boon has limited shelf-life 4 Aug 2023 Food and beverage giants like PepsiCo are ramping up marketing amid soaring sales. That’s a fillip for WPP and peers, which have seen revenue from tech clients stumble. The risk is that, with inflation falling, consumer goods’ momentum slows before Big Tech gets back on its feet.
Everyone is trying to steal Amazon’s cloud thunder 3 Aug 2023 Growth at the $1.3 trln company’s AWS cash engine leaped a low bar, beating expectations but lagging peers. With rivals increasingly leaning on cloud and AI hype, boss Andy Jassy’s task of keeping enough share to buoy improving but less-profitable operations gets ever tougher.
Hey Siri: Screen iPhone calls on Apple’s valuation 3 Aug 2023 The handset that anchors the $3 trln company is due an update soon. Loyal fans will buy it, but most customers are upgrading more slowly. The trend makes it hard to justify paying twice the multiple of earnings as five years ago, despite the record quarterly services revenue.
PayPal pays price for prolonged CEO hunt 3 Aug 2023 Despite 7% quarterly revenue growth under retiring boss Dan Schulman, the company’s adjusted operating margin fell short of its 22% projection. Bad small-business loans also contributed to another 11% drop in the share price. Vital strategic plans are in a costly holding pattern.
Superconductivity is wild card for stock market 2 Aug 2023 The possible discovery of material that efficiently carries electricity is a fresh disruption for investors grappling with artificial intelligence. They must decide if it’s real, if it’s viable; how it affects existing markets; if it creates new ones; and when change will happen.
France wins more than Kretinsky in Atos breakup 1 Aug 2023 Billionaire Daniel Kretinsky will buy the IT group’s older assets for 2 bln euros including debt. Paris will be pleased that the other, sexier cybersecurity division stays French. Meanwhile the Czech tycoon gets the ailing unit with little relevance to his other recent purchases.
Big Tech super-regulator would be a super-dud 27 Jul 2023 Two big-name senators – a Democrat and a Republican – want a new agency to police tech firms. The highly polarizing consumer watchdog shows why that's a bad idea. A better one: pass laws to update regulators that exist already. Big Tech remains Congress’s responsibility to shirk.
For Meta, what’s old is finally new again 26 Jul 2023 Facebook’s owner is rebounding from the ad slump, evidenced by an 11% quarterly revenue jump. It’s a good sign for boss Mark Zuckerberg as he tries to boost the business with AI. Virtual reality will be a money pit, but at least some investment is paying faster dividends.
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.