Data

Capital Calls: Snowflake’s no snowflake

3 Mar 2022

Concise views on global finance: The data warehouse firm doubled revenue, but the stock was whacked. Snowflake’s solid finances mean missteps are valuation conundrums, not existential threats.

Africa’s lofty data-centre prices have solid roots

4 Jan 2022

After deals in Nigeria and Kenya, $50 bln U.S. operator Digital Realty is buying most of South African rival Teraco. The $3.5 bln price tag is eye-catching given the risky location. But the continent’s growing population and rising data demand make the long-term numbers add up.

Capital Calls: China’s data centre sale

24 Nov 2021

Concise views on global finance: Global Switch is attracting big-name private equity interest, but its quirky setup might justify suitors asking for a discount.

Data-center valuations enter the metaverse

15 Nov 2021

CyrusOne has struck a deal with buyout firm KKR for a rich $15 bln, while peer CoreSite is selling itself to American Tower for $10 bln. Both deals show from different angles how financial and industrial buyers are banking on the arrival of Silicon Valley’s new virtual reality.

AT&T deal is a drama in search of a plot

16 Nov 2021

The $177 bln telecom giant hasn’t detailed the structure of the deal with Discovery it announced in May. It hasn’t articulated an operational strategy either, and its pay-TV unit HBO looks like it’s in a sweet spot. AT&T is committed to a deal – but maybe it shouldn’t be.

Capital Calls: Philips, Chinese overseas IPOs

15 Nov 2021

Concise views on global finance: The Dutch electronics firm’s shares drop 11% as it faces new questions over a recall of faulty ventilators; the country’s cyberspace regulator makes clear that sensitive data questions for initial public offerings apply to Hong Kong too.

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.

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.

French cloud IPO is a bet on EU tech sovereignty

5 Oct 2021

OVHcloud is listing in Paris for up to 3.7 bln euros. Slow growth and the tight grip of founder Octave Klaba justify the IT group’s low valuation. But sales could surge if European businesses and governments push to keep data at home rather than with Amazon, Google or Microsoft.

Data center holdout needs new class of buyer

1 Oct 2021

The nearly $10 bln CyrusOne is exploring a sale after missing out on previous consolidation. A historical discount to rivals is an opportunity for infrastructure investors keen on the expanding sector. But any suitor will have to overlook challenges that put off others.

Chancellor: Tech growth comes at irrational price

9 Sep 2021

So overwhelming is the desire to find the next Alphabet, Amazon or Facebook that investors are giving nosebleed valuations to just about any software firm offering cloud-based services. The discount rates by which these enterprises are valued make no sense. Caveat speculator.

Capital Calls: AMC, German pet retailer

8 Sep 2021

Concise views on global finance: The movie theater chain enjoyed bumper Labor Day attendance; a trio of private equity suitors are circling Zooplus.

Italian data land grab comes at a price

31 Aug 2021

Fintech group ION has upped its bid for risk intelligence provider Cerved to 2 bln euros. An overall premium of 45% reflects growing demand for financial information. Offloading Cerved’s debt collection unit, worth perhaps 400 mln euros, would help recoup some of the cost.

Guest view: Climate’s lessons for the water crisis

27 Aug 2021

Tackling carbon emissions is at last mainstream thanks to data, science, a clear message and plenty of capital. Martijn Wilder, co-founder of climate advisory and investment firm Pollination, argues that drawing on those can help alleviate worsening floods and water scarcity.

Telecom floor price threatens toppy Indian tech

20 Aug 2021

Mobile operators want regulators to impose minimum rates to help ease financial stress. Without higher charges, Vodafone’s local unit might struggle to repay debt. Rational tariffs, however, would hurt the voracious data consumption underpinning soaring tech valuations.

LSEG data drive shows everywhere except its stock

6 Aug 2021

Financial information now brings in roughly two-thirds of the $60 bln London Stock Exchange owner’s revenue. Yet its shares trade closer to European exchange operators than more highly valued data purveyors. CEO David Schwimmer faces a long haul to win over sceptical investors.

Nationalist flame wars will singe China Inc

14 Jul 2021

Angry users are ditching Didi’s ride-hailing app for alleged data leaks to foreigners. Patriotic extremism has stung overseas brands like H&M; now it’s turning on domestic companies, sometimes with official encouragement. It sets a dangerous precedent that could get out of hand.

Beijing sets wolf to guard equity sheep

12 Jul 2021

China’s cyberspace agency may take the lead deciding which companies can tap offshore markets. The move risks undoing progress made integrating financial regulation following the 2015 stock crash. A turf war also might clog the domestic IPO queue and encourage corruption.

China’s prolonged credit-scoring saga amasses risk

24 Jun 2021

Ant may be trying to wriggle out of a co-op with rivals by forming a venture with state-owned companies. That would be better for the fintech giant, but not necessarily for the public. As consumer debt grows, Beijing’s inability to devise a decent system wastes precious time.