Consumer Products and Services

Hypebeast finds SPAC shortcut to dual listing

4 Apr 2022

The Hong Kong-listed lifestyle, advertising and e-commerce firm is selling a stake to a blank-check vehicle, thereby collecting a U.S. listing as well. The implied valuation, despite being at a premium, is sober by SPAC standards. The novelty is involving two stock exchanges.

Capital Calls: U.S. truck drivers go missing

4 Apr 2022

Concise views on global finance: Bonuses and concessions from Washington aren't enough to fill the industry's empty cabs.

Capital Calls: Microsoft’s Activision deal

31 Mar 2022

Concise views on global finance: The software giant’s $69 bln acquisition of the “Call of Duty” publisher comes with a ton of baggage. That could be why Activision shares are trading at a wide discount to the deal price.

Buy gas now, pay later is a hard tiger to ride

1 Apr 2022

Fintech firms Klarna and Zip are offering U.S. punters interest-free instalments as a way to manage higher fuel bills. The fact that consumers use loans to afford mere essentials raises the risk of defaulted payments. And unlike discretionary sales, Klarna isn’t getting a fee.

Capital Calls: Chip supply chain bites own tail

31 Mar 2022

Concise views on global finance: Semiconductor factories rely on machines made by ASM International. Paradoxically, the firm is having trouble finding the chips it needs. Untangling the mess will take a while.

Carl Icahn is attempting to rewrite his legacy

30 Mar 2022

From a favorable documentary to campaigns criticizing how McDonald’s and Kroger treat pigs, the activist is crafting his final chapter. Icahn changed the course of many companies and his investment prowess is undeniable. But a full evaluation of his impact demands a broader lens.

Uber, Lyft grease driver’s pockets with surcharge

29 Mar 2022

The ride-hailing firms added a 55 cents per-trip surcharge to offset a 50% spike in fuel prices. That should cover the bump in gas and then some. Both firms are competing in a tight labor market, so it’s a start. But they may find they have to open their wallets, too.

Instacart’s painful price cut may not be enough

25 Mar 2022

The grocery delivery service firm slashed its valuation by nearly 40% to $24 bln. That’s partly a reflection of peers’ market prices. But based on sales, it’s still valued twice as high as DoorDash. With competition growing from Amazon and Walmart, a further cut may be in store.

Alphabet fiddles as app-store antitrust fire burns

24 Mar 2022

The $1.8 trln Google parent will let Spotify use its own payment service, skirting a 15% fee. The move piles pressure on rival Apple to do the same. But it’s just a pilot project and probably still includes a hefty charge. U.S. and EU regulators may force the duo to go further.

How Mad Men are waking up to the metaverse

22 Mar 2022

The pandemic sped up the shift to online advertising and e-commerce. In this episode of The Exchange Mark Read, CEO of WPP, tells how his clients coped with Covid-19, why virtual reality is the next big thing for consumer giants, and why corporate purpose is more than a buzzword.

Starbucks CEO do-over points to two labor problems

16 Mar 2022

Howard Schultz is back for the third time as CEO, at least until the coffee chain finds a new one. As employees grow restive, drafting in a benevolent patriarch looks strategic. The lack of an internal successor, though, suggests unions aren’t Starbucks' only workforce challenge.

Discovery CEO pay starts new era on wrong footing

15 Mar 2022

David Zaslav was awarded $247 mln for heading the TV firm in 2021, twice what Tim Cook got for running Apple, a company 200 times bigger. Shareholders don’t get a say on Zaslav’s slab of cash and options. But they will after its merger with WarnerMedia, and it may not be pretty.

India’s food super-app hits new gluttonous heights

14 Mar 2022

Food delivery group Swiggy’s ramp up of its rapid grocery service is locking in higher-spending users, giving the Prosus-backed firm an edge over Zomato. But the tech rout and ugly economics of speedy deliveries suggest a $10 bln valuation is better served up in private markets.

Russian shoppers weaken case for companies to stay

11 Mar 2022

Adidas and Unilever are among those cutting back in the country. They make way for locals such as retailer Magnit and Asian consumer giants that stick around to gain market share. The effect of sanctions on disposable incomes, however, makes the financial logic less compelling.

Capital Calls: Argentina, Oligarch yachts

4 Mar 2022

Concise views on global finance: Argentina’s $45 bln debt deal is hope trumping experience; Floating assets sometimes worth more than $500 million each are worthy sanctions targets.

Meituan sums up struggle to solve Beijing riddles

2 Mar 2022

The food-delivery giant lost $28 bln in market value after regulators suggested last month that merchant charges should be cut. State media later downplayed the guidance, but now the company is lowering some fees. It’s a classic case of why investing in Chinese tech is so hard.

Budweiser’s foam will be hard for ThaiBev to brew

24 Feb 2022

AB InBev’s Asian spinoff grew 2021 net profit by 76%, helped by premium pricing and a recovery in volume. The results bolster the case for its Bangkok-based rival to revive a beer IPO plan. The valuation, however, should be more sobering than Bud’s 36 times expected earnings.

Capital Calls: Macy’s activist wins despite rebuff

23 Feb 2022

Concise views on global finance: Though the retailer rebuffed Jana Partners’ efforts to separate its e-commerce business, refocusing investors likely delivered a healthy return for the pushy shareholder.

7-Eleven clash shapes up to be Mt. Fuji moment

22 Feb 2022

Emboldened by its success in Japan, normally discreet ValueAct is publicly chiding Seven & i’s structure and governance. The $44 bln retailer has dug in after previously fending off Dan Loeb. Winning over local fund managers would help a bubbling flow of pushy investing to erupt.

Hasbro breakup is the monster under the bed

18 Feb 2022

An activist wants the toymaker to spin out the division that holds card game “Magic: The Gathering”. The alternative is for incoming CEO Chris Cocks to revive a plan to become a Disney-like media empire. Cocks deserves a chance, but the allure of a carve-up sets him a high bar.