Shein margin wobble takes bite out of IPO value 14 Nov 2024 The e-commerce giant’s revenue growth slumped in the first half of 2024, and the net margin fell to 2% per The Information. Even if the business recovers, it creates uncertainty that’s compounded by a protectionist US government. Investors may struggle to see the upside.
Vodafone M&A spree leaves German problem untouched 12 Nov 2024 CEO Margherita Della Valle has spent the past 18 months remodelling the $23 bln telco by striking deals in Britain, Spain and Italy. But the shares have trailed European rivals’. To change that, the former finance chief will have to tell a better Teutonic growth story.
What Masayoshi Son can teach us about investing 11 Oct 2024 The Japanese tech tycoon backed future giants like China’s Alibaba as well as spectacular flops like office-sharing startup WeWork. A new biography likens him to a high-stakes gambler. But Son’s chequered career also reveals some of the skills of a successful venture capitalist.
Vinted’s price markup rests on limitless growth 9 Sep 2024 Private equity shop TPG may buy a stake in the second-hand clothing site at a $5.5 bln valuation, the FT reported. It implies a much steeper multiple than the main listed peer. That may be fair if rapid growth persists, but the performance of other marketplaces are a red flag.
Cheap labour fuels India’s newest e-commerce boom 23 Aug 2024 Quick commerce, which promises deliveries of everything from milk to phones in 10 minutes, is growing five times as fast as traditional groceries. That's due to an army of low-earning workers. Amazon and Reliance want in but the market will be tough for new entrants to crack.
Elon Musk’s best move in EU fight may be an eXit 21 Aug 2024 The billionaire has different views on content moderation from the European Commission, which is investigating his social-media site. It’s hard to imagine a compromise. Rather than risking fines of 6% of sales, it might be easier for X to simply block users in the region.
Drahi-for-Bharti swap gives BT partial relief 12 Aug 2024 French mogul Patrick Drahi is offloading a 25% stake in the British telco worth about $4 bln to India’s Bharti. BT CEO Allison Kirkby can stop worrying about her indebted shareholder. Alongside Deutsche Telekom and Mexico’s Carlos Slim, her share register still looks crowded.
Google’s third-place cloud business is a winner 23 Jul 2024 Parent Alphabet tripled its quarterly operating income at its IT service division. It still lags in market share. Yet the $2 trln giant has an advantage learning from the mistakes of larger rival Microsoft while bigger peer Amazon illuminates the potential profit ahead.
Cyber meltdown points to downsides of efficiency 19 Jul 2024 A software update by $83 bln CrowdStrike grounded flights and disrupted financial markets. That’s possible because businesses work with a small number of providers, seeking lower costs. It supports rich tech valuations, but also heightens the risks of a catastrophic failure.
Wanted: A buffed-up board to put a sheen on Shein 28 Jun 2024 The $63 bln fast-fashion giant needs to find a chairman and board directors ahead of a London IPO. Providing comfort to fund managers jittery about Shein’s supply chain and cheap clothes will be tough. Breakingviews imagines how a headhunter might approach potential candidates.
Carlos Slim’s BT stake may just be a prelude 13 Jun 2024 The Mexican billionaire has taken 3% of the $17 bln UK telco. Nationalism, and Slim’s failed 2012 tilt at Dutch peer KPN, imply he won’t launch a full bid. But BT investors Patrick Drahi and Deutsche Telekom may sell their shares if he gets even keener on the group’s turnaround.
Snowflake’s growth story is worryingly typical 23 May 2024 The $55 bln software firm’s revenue is growing rapidly, partly because of AI initiatives, and investors are rewarding it. But marketing costs and stock-based pay are high, and semiconductors costs are rising. As tech newbies show, excitement based on sales growth often thaws.
Shrunken Vodafone has narrow path to growth 2 May 2024 The $24 bln telco’s stock is down since CEO Margherita Della Valle sold the slow-growing Spanish and Italian units. Outside core and mature UK and German markets, hopes for growth rest on corporate clients and Africa. That may not be enough to close Vodafone’s valuation gap.
Comcast’s theme parks are an underrated attraction 29 Apr 2024 The cable conglomerate’s giant Epic Universe resort is finally due to open in 2025. Super Mario and Harry Potter are solid headliners, but the $240 bln enterprise’s valuation suggests investor skepticism about joining the ride. Mixing media and internet makes only so much magic.
Who can serve up the Goldilocks recipe for AI? 25 Apr 2024 Investors slapped down Facebook owner Meta for hefty spending on artificial intelligence with uncertain returns. Conversely, they have feted chipmaker Nvidia for its real-life revenue from AI tools. Microsoft and Alphabet are doing a decent job of landing in the middle.
TikTok’s fate matters only up to a point for Meta 24 Apr 2024 Under a new US law, owner ByteDance is likely to sell the app without its secret sauce, suffer a ban or win a court challenge. Mark Zuckerberg’s social-media colossus should capitalize on the first two scenarios. Even the third allows it to make decent headway against its rival.
EU tech rules bite ever-closer to Apple’s core 10 Apr 2024 As Brussels gains new powers and enforces a March music-streaming ruling, the European Union can finally force Apple to change how the iPhone works with outside developers. A US antitrust case adds pressure. Users may not like the results, which means investors should care too.
Google will struggle with Apple-generated AI query 5 Apr 2024 Artificial intelligence presents the first serious threat to the search engine’s 25-year dominance. Parent Alphabet has the money and tech nous to fend off rivals. The bigger financial risk is its $120 bln relationship with the iPhone maker as trustbusters try to pry them apart.
Credit card suit takes swipe at perks programs 27 Mar 2024 A $30 bln settlement in a decades-old lawsuit will compel payment networks Visa and Mastercard to let retailers charge customers more to use certain cards – and to tell them why. As shoppers take notice, they may cool on fancy rewards programs.
Alibaba sends out SOS on Hong Kong’s market 27 Mar 2024 The Chinese e-commerce giant ditched plans to list its logistics unit in the city and offered to buy out minority shareholders including Singapore's Temasek at a $10 bln valuation, half the mooted worth six months ago. It points to more pain for owners of unlisted Chinese assets.