Social Media

Trump’s Truth Social is an overvalued threat

25 Feb 2022

The former U.S. president launched his social media app after Twitter and others booted him from their platforms. Twitter’s slowing growth suggests he might be able to capture a unique following. But based on its users, its $20 bln market cap is at least double fair value.

Shackled woman’s plight helps China find S in ESG

18 Feb 2022

Uproar over a mother found chained in a shed, a suspected trafficking victim, has the financial blogosphere in a rage as some call for a boycott of the local government’s bonds. A capital movement targeting social injustice could move prices, but only if Beijing lets it.

Twitter share buyback is an odd way to take flight

10 Feb 2022

New CEO Parag Agrawal plans to repurchase $4 billion in stock. He will also spend more to improve tepid revenue growth. But tough competition and the $30 bln company’s slim slice of the ad market mean Agrawal could do with keeping more in the coffers to help him hit his targets.

Facebook’s future rests on Reels, not metaverse

9 Feb 2022

Mark Zuckerberg’s iffy bet on virtual reality cost Meta Platforms $10 bln last year. But the $600 bln social network has gotten higher returns for investors by improving on ideas that already exist. The best way to stop its decline is to copy its biggest competitor TikTok.

Facebook $250 bln slump punctures antitrust case

7 Feb 2022

That’s how much Mark Zuckerberg’s firm Meta Platforms lost in value after growth stalled. Competition from TikTok specifically is getting tough, but U.S. antitrust regulators who are fighting Facebook have said the Chinese-owned app isn’t a rival. The market begs to differ.

Why Spotify’s Daniel Ek is sticking with Joe Rogan

7 Feb 2022

The streaming group’s CEO condemned the talk show host’s use of racial slurs but refused to axe him. Ek is betting that financially motivated music labels will resist artist boycotts, and that users are locked in. Rogan represents a podcast pivot that’s key to boosting earnings.

Snap investors have too many stars in their eyes

4 Feb 2022

The messaging app’s shares soared 50% even though it warned ad privacy changes could hit revenue – something that clobbered Meta Platforms. They share risks, including an ascendant TikTok. Snap looks extra pricey given it lacks peers’ ability to hurl money at new problems.

Facebook’s grip on online ads may be slipping

2 Feb 2022

Parent Meta Platforms lost some $200 bln of market cap after an earnings report that suggested weaker-than-expected advertising growth to come. Headwinds ranging from Apple to TikTok are part of the problem; Mark Zuckerberg’s expensive pivot to the metaverse doesn’t help.

Breakdown: Real profit and loss in the metaverse

28 Jan 2022

Mark Zuckerberg is on the case, and nascent virtual spaces like Decentraland could be the next social-networking hit. Breakingviews unpacks the metaverse, what it offers users and investors, and the risks.

Facebook’s crypto demise is a missed opportunity

27 Jan 2022

The social network’s digital asset group is winding down under regulatory pressure. Though Diem Association’s links with Facebook proved toxic, ex-member firms like Visa could have made cryptocurrencies respectable. Meanwhile, watchdogs have done little to rein in riskier coins.

ByteDance’s lukewarm 2021 presages a bleak 2022

21 Jan 2022

TikTok’s owner grew annual sales 70% to $58 bln. That’s slower than the previous year and is mostly from its home market. An advertising slowdown will further bite, while China’s crackdowns in education and video games have foiled nascent bets. Finding new growth will be hard.

Ant will be best among China’s BAD bunch

23 Dec 2021

After a brutal year for tech, ByteDance, Ant and Didi will spearhead the sector’s recovery. A shaky ad market looms for the restructured TikTok owner, however, while the ride-hailing company faces rising driver costs. Jack Ma’s fintech outfit has the clearest path ahead.

Qatar’s World Cup will pay Gulf-wide dividends

22 Dec 2021

After an awful lead-in, expectations for soccer’s showcase event in 2022 are low. Even so, the tiny emirate’s status will likely benefit. Provided Covid-19 is under control, the jamboree should also boost a regional economic recovery that has lagged other parts of the globe.

Private equity will be potent Hollywood antihero

21 Dec 2021

Blackstone’s deal with Reese Witherspoon in 2021 positioned it as a challenger to video streaming services. Buyout firms have the money and talent handling skills to make it in Tinseltown. But to make the math work, their future customers need to remain in good shape too.

China celebrity crackdown is tech’s horror show

21 Dec 2021

"Queen of livestreaming" Viya was fined $210 mln for tax evasion and had her social-media accounts shut. Investors wiped up to 12% off platform providers like Bilibili and Alibaba. The effect on the fast-growing $300 bln influencer market suggests that underestimates the risk.

Reddit float feeds on meme stock craze

16 Dec 2021

The social network, long dwarfed by Facebook, has filed for an IPO. Retail traders have inflated user numbers and advertising revenue. Reddit might seek a $15 bln valuation, five times its worth three years ago. It needs to prove that a midlife resurgence won't become a crisis.

Jack Dorsey’s fintech firm stumbles out of block

9 Dec 2021

Renaming Square to Block should have been bottom on his to-do list. Bigger priorities include integrating its $29 bln purchase of Afterpay, improving profitability and fending off rivals. Dorsey is more of a visionary. When it comes to Square, he’ll have to get his hands dirty.

Prosus runs out of friends at Russia’s Facebook

8 Dec 2021

After a shareholder shimmy, VK is ending up in the arms of the state gas giant and a Putin ally. Delisting it to combine the $4 bln group with the duo’s media empire would unlock savings. It would also be a slap in the face to minorities like the $180 bln Dutch tech investor.

Capital Calls: Securitas

8 Dec 2021

Concise views on global finance: The Swedish security specialist’s acquisition of Stanley Black & Decker’s alarms unit should boost growth and margins.

Capital Calls: Microsoft, AT&T, American Airlines

7 Dec 2021

Concise views on global finance: Microsoft is finally being scrutinized with Europe’s probe of its $16 bln Nuance deal; U.S. lawmakers have antitrust worries about the telecom firm’s Discovery deal; American Airlines’ retiring CEO leaves shareholders short-changed.