Internet

U.S. probe forces Alibaba in the right direction

26 May 2016

The Chinese e-commerce giant’s accounting is under investigation. Depending on the outcome, Alibaba may have to consolidate its loss-making logistics business. If the scrutiny helps shed light on some of the group’s many blind spots, investors will be better off.

Supercell sale would mark reboot for SoftBank

24 May 2016

Chinese giants are reportedly circling the SoftBank-owned developer of mobile gaming hits like Clash of Clans. A $5 bln-plus sale would seal a good return. It would also suggest President Nikesh Arora is making SoftBank more disciplined about selling, as well as buying, assets.

Tencent can shield itself from ad slowdown

19 May 2016

The Chinese gaming giant warned a slowing economy may clip its fast-growing advertising business. But soaring revenue from mobile games, which topped $1.3 bln in the first quarter, cushions the blow. Besides, unlike rivals Alibaba and Baidu, Tencent relies less on ad dollars.

Apple’s $1 billion plucks a strange fruit in China

13 May 2016

The tech giant says investing in car-hailing app Didi – whose Chinese name is “little orange” – will help it in the People’s Republic. Apple can afford to join a costly battle with rival Uber. But it’s less obvious how that will revive iPhone sales or clear regulatory hurdles.

China listing doubts leave Qihoo investors on edge

11 May 2016

The U.S.-listed web group’s shareholders have accepted a $9 bln buyout offer. Yet a regulatory crackdown may scupper plans to float in China. Even after a rebound the shares trade at an 8 pct discount. That’s scant compensation for the risk that the buyout group may walk away.

Nokia could spend a year on hold

10 May 2016

The Finnish telecoms group saw a 9 percent year-on-year drop in Q1 sales, in the first combined set of numbers since its 15.6 billion euro Alcatel-Lucent tie-up. Gross margin improved and synergies have been revised up. But slow mobile equipment sales remain a standout.

Baidu selloff understates long-term health risks

10 May 2016

Regulators have ordered China’s top search engine to rein in healthcare advertising after a scandal. That could knock as much as a fifth off earnings. Investors who have marked the shares down by 13 pct so far may be underestimating the broader impact on Baidu’s business model.

Alibaba’s strong core comes with shaky periphery

5 May 2016

The Chinese e-commerce group’s revenue soared 39 pct year on year, faster than volumes of stuff sold on its sites. Alibaba also disclosed losses on its fintech, services and logistics affiliates. Those trends can co-exist, so long as online shopping growth stays sturdy. 

Baidu shows health is a huge flashpoint in China

3 May 2016

A dying student accused the search giant of promoting false medical information. The ensuing probe has cut $5 bln from Baidu’s market value: a big move but not an overreaction. Health scandals are highly sensitive and authorities pay close attention to outbursts of online anger.

Baidu stops short of full download on local bets

29 Apr 2016

Sales are soaring yet earnings fell 19 pct last quarter at China’s top search engine. Baidu is finally outlining how a costly push into food, movies and maps fits with its main search business. But investors still have little insight into how and when this will start paying off.

Zuckerberg tightens grip as Facebook cash flows

27 Apr 2016

Amid a tripling of profit and 50 pct rise in sales, the social network is creating a third class of non-voting stock. It cements control for CEO Mark Zuckerberg in the event of big M&A or staff rewards. At least the weak corporate governance also may help philanthropic deeds.

Yahoo’s bow to Starboard signals inevitable sale

27 Apr 2016

The troubled internet firm has agreed to appoint four of the activist investor’s nominees to its board. Starboard founder Jeff Smith’s addition to the committee exploring a deal is the most notable development. A slow and desultory process just received a long-overdue kick.

Jack Ma’s jewel is a $20 bln mystery for Alibaba

27 Apr 2016

The e-commerce group’s financial affiliate is now valued at $60 bln. Alibaba has an option to take a 33 pct stake, or extend a profit-sharing agreement between the two. Yet their future relationship is clouded by regulatory uncertainty. Alibaba’s shareholders are in the dark.

Apple can juice peaking iPhone sales with services

26 Apr 2016

The tech giant peddled fewer smartphones last quarter, causing a 13 pct drop in revenue. One way of reversing the unprecedented development would be to persuade users they need pricier models sooner. That’s difficult, though. A simpler solution lies with features like Apple Pay.

Twitter squandering users’ value to advertisers

26 Apr 2016

The $12 bln micro-blogging network missed quarterly-revenue estimates as ad spending lagged expectations. Boss Jack Dorsey’s plans for streaming video and targeting celebrities might pique Madison Avenue interest. But the advantage of an influential audience is slipping away.

Confucius say: Don’t confuse Ant with unicorn

26 Apr 2016

The $60 bln implied value of Chinese fintech group Ant Financial suggests PayPal-style innovation on steroids. It’s not so simple, though. The Alibaba affiliate’s fortunes may be tied more closely to the vagaries of PRC state capitalism than to private-sector disruption.

Review: A short tour of Jack Ma’s virtual mansion

22 Apr 2016

An insider’s account provides fresh insights into the origins of China’s most successful entrepreneur. Yet the tale of Ma’s rise reveals little about the inner workings of his e-commerce empire. Outsiders are no closer to disentangling Alibaba’s future from its founder.

Google’s app store grows into risky opportunity

21 Apr 2016

Alphabet’s internet-advertising cash cow disappointed in Q1, but continued rapid growth in what it dubs “other revenues” provided a bit of solace. The company’s Android applications store is becoming steadily more important to the company – not to mention antitrust regulators.

China buyout boom fuels $3.5 bln car website race

18 Apr 2016

Autohome’s CEO is leading a bid to take over the Chinese auto listings site, hours after major shareholder Telstra sold 48 pct of the U.S.-listed group to insurer Ping An. Despite a cooling economy and slumping stocks, China’s take-private trend shows no sign of slowing down.

China’s tech giants set for costly food fight

14 Apr 2016

E-commerce giant Alibaba is leading a $1.3 bln investment in takeout group Ele.me. Apps linking China’s mobile users to local services are booming. But arch-rivals Baidu and Tencent are also betting heavily on food. And building a good delivery network is pricey.