E-commerce

Capital Calls: Moderna’s $40 bln shot gain

29 Nov 2021

Concise views on global finance: News of a spreading Covid-19 variant added $40 bln to the biotech’s market value. Investors are pricing in about 3 billion extra jabs. That’s rosy given competition and uncertainty.

Pinduoduo’s strategy sows further seeds of doubt

25 Nov 2021

The Chinese e-commerce company rocketed to relevance by single-mindedly challenging Alibaba. Following policy crackdowns and rising costs, it’s expected to swing back to a quarterly operating loss. New boss Chen Lei would benefit from looking beyond farming for additional growth.

Paytm battering targets raw valuation underbelly

24 Nov 2021

India’s fintech giant is worth $13 bln after a 31% post-IPO drop. That remains exuberant at 26 times sales. The company is still growing, but revenue pressure is a concern, and costs are high. Success requires official help on fees and lending. That’s far from guaranteed.

Capital Calls: Risky banks, UK SPAC, AO World

23 Nov 2021

Concise views on global finance: A global watchdog reckons JPMorgan is once again the world’s most systemically important lender; investment firm Hambro Perks launches a UK blank-cheque vehicle; the British online retailer issues its second profit warning in two months.

Bezos could be $90 bln richer with Amazon breakup

19 Nov 2021

The $1.8 trln giant manages its AWS cloud group separately from e-commerce. On its own, the former may be worth as much as the entire company is now. J&J, GE and Toshiba are heading to splitsville. The world's richest man could become even wealthier by adding Amazon to the list.

Paytm IPO ends Morgan Stanley India winning streak

19 Nov 2021

The fintech firm’s 27% first-day drop contrasts with pops the Wall Street giant oversaw for Nykaa and others. Paytm execs and powerful buyers and sellers like Alibaba, SoftBank, and BlackRock all played a role in the fiasco. But as lead bank Morgan Stanley has most to lose.

JD looks sturdier than Alibaba in Beijing’s storm

18 Nov 2021

Quarterly earnings at the Chinese e-commerce giants fell as regulatory and other woes take their toll. But the smaller e-retailer is gaining market share while revenue at Alibaba’s core online shopping unit barely grew. The diverging fortunes will bolster JD’s valuation premium.

Paytm IPO misery leaves Indian tech looking West

18 Nov 2021

The Alibaba and SoftBank-backed fintech company plunged a bruising 24% on its debut, in contrast to huge first-day pops for Nykaa and Zomato. The market is mispricing tech IPOs. It revives the debate about listing in a New York market more accustomed to money-losing firms.

Capital Calls: Stadium naming, Diageo, Evolution

17 Nov 2021

Concise views on global finance: Crypto.com is paying heavily to rename Staples Center; The drinks maker plans to grow its market share by 50% in the next decade; the $36 bln Swedish gambling firm lost $2 billion of its market capitalisation after accusations of illegal gambling.

Richemont beats orderly retreat from digital fight

12 Nov 2021

Under pressure from activists, the Cartier owner plans to spin off its loss-making online arm to rival Farfetch and others. If valued in line with peer Zalando it would be worth a respectable 4.7 bln euros. A sale should help Richemont close the valuation gap with luxury rivals.

Capital Calls: Lordstown Motors, CVC

12 Nov 2021

Concise views on global finance: Shares of the short seller-targeted electric vehicle startup are falling as it drifts into the slow lane; the private equity company aims to bulk up with a 1.6 billion euro offer for Amsterdam-listed Intertrust.

India’s record IPO sets tough stage for next one

11 Nov 2021

Unprofitable Paytm sold $2.5 bln of shares at a dizzying valuation multiple but a muted reception defied the payments giant’s early buzz. It suggests another household name, state insurer LIC, whose issuance will be multiples larger, faces a slog unless it checks its ambition.

Beijing gaming curbs raise Tencent overseas stakes

10 Nov 2021

The Chinese tech giant’s quarterly adjusted earnings suffered a rare fall as a regulatory crackdown weighed on domestic video game sales. It adds urgency for Tencent to find growth in new markets, including by acquisition. But even small deals face scrutiny from U.S. regulators.

Indian startup repackages deliveries for investors

9 Nov 2021

Delhivery has grown its reach by relying on partners for warehousing and last mile, so it owns fewer assets than FedEx and Chinese peers. That leaves it more dependent on tech and exposed to volatile costs like rising rents. A $5.5 bln IPO valuation might be slow to stack up.

Alibaba is better off without Singles’ Day

5 Nov 2021

China's $448 bln e-commerce group wants this year's shopping fest to be greener. It's using less packaging and promoting eco-friendly brands. Still, the annual frenzy looks increasingly at odds with Beijing's environmental goals. Calling it off sends a stronger message.

E-brokers are big reach for Beijing’s long arm

4 Nov 2021

A Chinese central banker chided trading apps that cater to rich investors with money abroad. That suggests new restrictions are in the works. Barring an awkward crackdown on banks that help move capital overseas or a complete ban, however, $9 bln Futu and its peers can thrive.

Funky debt offers SoftBank fix for UK retail hole

3 Nov 2021

Masayoshi Son’s group has an option to buy part of the e-commerce unit of stricken retailer THG, in which it owns a stake. Honouring that would mean big losses, but walking away could amplify the UK group’s woes. Investing in a new convertible bond might buy time for a recovery.

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.  

Capital Calls: WeWork listing, Polish games maker

21 Oct 2021

Concise views on global finance: The battle-scarred office-sharing outfit finally started trading on the NYSE after its deal with a blank-check company closed; CD Projekt delays chunky updates to its flagship “Cyberpunk” video game, avoiding a repeat of last winter.

Time to end Richemont’s online fashion drag

18 Oct 2021

The Cartier owner may sell its e-commerce business YNAP just three years after taking it over. A deal with Farfetch or other rivals might reap at most 3.6 bln euros. Yet, by cutting exposure to a lossmaking unit, boss Johann Rupert would smarten up his company’s dowdy valuation.