Fintech

Google antitrust trial crystallizes Apple’s risk

15 Nov 2023

Court testimony revealed that Alphabet’s search giant gives the iPhone maker 36% of ad revenue generated through its devices. The cost allows Google to argue it’s in a pay-to-play market. It also suggests that Apple and its shareholders have more to lose from the deal unwinding.

Alphabet and Robinhood split at rate fork in road

13 Nov 2023

The web search giant sold its stake in the online trading company as their shares head opposite ways. Google’s parent can thrive in a steady economy while Robinhood depends more on faster growth and high-yielding accounts. Elevated borrowing costs favor cash-generating tech.

Adyen shows being an open book pays off

9 Nov 2023

Shares in the Dutch payment firm jumped 35% despite less ambitious revenue growth and profit margin targets. That seems inconsistent. But investors cheered Adyen’s promise of more frequent updates and its clearer business roadmap. It proves the benefits of being transparent.

Profitable Klarna poses IPO valuation conundrum

9 Nov 2023

The pay-later group is making money. Ahead of a possible float, that makes it easier for CEO Sebastian Siemiatkowski to claim he has a viable business. Yet to get an uplift on his last $7 bln price tag, he’ll have to persuade investors to value Klarna like a fintech, not a bank.

Capital Calls: Regulating crypto

7 Nov 2023

Concise views on global finance: The US Securities and Exchange Commission is struggling to hire digital token experts, partly because prospective recruits aren’t willing to acquiesce to the agency’s requirement that they sell their holdings in bitcoin and beyond.

Worldline crash is pivotal moment for payments

25 Oct 2023

The $7 bln French group’s shares fell 60% after it said sales would be hit by a call to ditch riskier merchants. Investors expect payment providers to be on top of flaky transactions. The fact that a leading player has had to rethink will scare them, and alert regulators.

Alphabet’s present looks brighter than its future

24 Oct 2023

Revenue at the Google parent rose more than 10% for the first time since mid-2022 because of a recovery in online advertising, its bread-and-butter. But a stumble in its fast-growing cloud computing unit suggests it will be tough for Alphabet to catch up with weightier rivals.

European payments LBO would be rewarding but messy

18 Oct 2023

CVC may bid for Milan-listed Nexi, Bloomberg reported. A $16 bln buyout could earn handsome returns, even if the group just performs as analysts expect. But Nexi’s private-equity shareholders like Hellman & Friedman know this, forcing buyers to either cough up or bring them in.

Bankman-Fried circus will be a singular clown show

4 Oct 2023

The FTX founder’s fraud trial bookmarks crypto’s rise and fall. Risk-loving speculators were the most obvious losers, while more everyday investors suffered in previous scandals such as Enron and Countrywide. This time, the spectacle is less likely to lead to new protections.

Visa takes charge of one risk as another grows

28 Sep 2023

The payments network devised a way for banks such as JPMorgan to gradually offload their collective 20% stake, worth about $96 bln. It would help avoid a mad dash to the exit. With credit card usage, and possibly fees, rising, however, fresh legal and regulatory concerns abound.

Jeffrey Epstein leaves small mark on Wall Street

27 Sep 2023

JPMorgan will fork out another $75 mln to settle claims over its ex-client, winding down the sordid mess for financiers. The sex offender cost two industry CEOs their jobs, while banks now monitor such reputational risks more closely. The effects are likely to fade soon, however.

India’s fintech partygoers nurse a needed hangover

11 Sep 2023

The $16 bln industry’s annual shindig was a sombre affair. Founders touted sustainable growth amid dipping valuations, regulators preached risk mitigation and big investors stayed away. Waning euphoria for the country’s digital ecosystem may, though, be an early sign of maturity.

Capital Calls: Diversity initiatives

23 Aug 2023

Concise views on global finance: The group that got the Supreme Court to overturn affirmative action at universities is suing financial firms to end programs for diverse applicants. It will make companies rethink recent diversity initiatives.

Capital Calls: Coinbase’s Circle deal

22 Aug 2023

Concise views on global finance: Crypto exchange Coinbase is investing in struggling $26 bln stablecoin issuer Circle. Tokens tracking the US dollar haven’t delivered on hopes of transforming finance; the deal promises little current payoff, but at least keeps the dream alive.

Crypto survivors will be severely scarred

17 Aug 2023

Digital asset custodian BitGo says it raised money at a $1.7 bln valuation, days after a rival filed for bankruptcy. As with stablecoins, exchanges, and currencies, winners are emerging in crypto. Stumbles will still happen, though – a painful but necessary process.

Fickle Big Tech customers wash away Adyen’s moat

17 Aug 2023

Shares in the Dutch payment group slumped 25% after first-half earnings missed forecasts. The former market star is seeing margins eroded by a hiring push. But the real issue is that users can easily switch to cheaper rivals. To fix that, the company needs a broader client base.

Mastercard’s African fintech bet is VC, but better

15 Aug 2023

Mastercard is investing in telecoms company MTN Group’s $5.2 bln mobile payments unit after backing an Airtel Africa-owned rival. The price is higher than past deals. But historical underinvestment in African fintech helps, as does its ability to spread money around.

PayPal would slot well in a different wallet

15 Aug 2023

As the $70 bln fintech company’s next CEO, Intuit veteran Alex Chriss brings small-business bona fides, but also dealmaking nous. It could be an opportunity for Citi, Meta or Stripe to advance their respective strategies. Fiserv, however, would make the most sensible partner.

CFOs are stepping into a rapidly revolving door

14 Aug 2023

From Alphabet to Tesla to Walgreens, finance chiefs are moving on at a faster rate than usual. One-tenth of the 1,000 largest US companies lost their CFO in the first half. Economic whiplash and expanded job duties are both factors. Higher turnover looks here to stay.

Capital Calls: Coinbase raises the stakes

4 Aug 2023

Concise views on global finance: For the first time, the $21 bln cryptocurrency exchange generated more revenue from services like pledging coins for blockchain initiatives than from transaction fees. Diversification is sensible, but 10 state regulators jeopardize the strategy.