Software

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.

Tech slump forces IPO hopefuls to consider Plan B

4 Feb 2022

Fintech Klarna, payroll provider Justworks and mobility upstart Lime are among those that were planning a listing in 2022. Yet tumbling valuations are prompting a rethink. Profitable companies can afford to wait. Others may have to find a buyer, or merge with a blank-cheque firm.

Capital Calls: Playtech breakup

3 Feb 2022

Concise views on global finance: After investors rejected a 3.2 bln euro buyout offer from rival Aristocrat, a breakup of the gambling software maker looks the best way to maximise value.

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.

Mark Zuckerberg’s startup project bets the company

2 Feb 2022

Meta Platforms has signaled a $10 bln hit to 2021 operating profit from investments in nascent virtual- and augmented-reality worlds. The founder has lots of advertising cash from his social networks to deploy. But reinventing an 18-year-old firm is a real-world uphill challenge.

MicroStrategy is storing up bitcoin bother

1 Feb 2022

The $4 billion company’s digital currency holdings now account for almost all of its enterprise value. CEO Michael Saylor may be happy running what increasingly looks more like a crypto vehicle than an analytics and software business. But he is inviting more regulatory scrutiny.

Apple supply shortages are a good problem to have

27 Jan 2022

Tech investors fear the pandemic pulled forward demand, especially for cloud-based companies. The $2.6 trln Apple has the opposite issue. Covid-fueled supply-chain woes have prevented it from satiating iPhone demand. Customer loyalty probably means these sales will come later.

Capital Calls: Crocs knows how to pandemic

11 Jan 2022

Concise views on global finance: The rubber-clogs maker’s sales are going gangbusters, and it has used lockdown success smartly to expand with a trendy acquisition.

Capital Calls: SEC, UK housing, Marijuana

10 Jan 2022

Concise views on global finance: The U.S. watchdog wants more private company transparency; The UK government’s decision to hit housebuilders with a four billion pound repair bill has lessons; and cannabis producer Tilray gives a glimpse of its life after its merger with Aphria.

Capital Calls: Enel’s payments punt

24 Dec 2021

Concise views on global finance: The 70 bln euro utility is paying up to 361 mln euros for a relatively pricey punt on fellow Italian payments firm Mooney.

Zuckerberg has metaverse rivals who mean business

23 Dec 2021

Meta Platforms and Epic Games are trumpeting visions of an immersive, 3D internet. But even ignoring the technological challenges, consumers’ appetite for full-on virtual socialising is uncertain. The corporate world is a more manageable target – and that is Microsoft’s domain.

Data hunters will be Big Pharma’s next prey

20 Dec 2021

Drugmakers such as AstraZeneca spend $160 bln annually trying to unearth new treatments for diseases like cancer. The winners will be those who can source and analyse data quickly. That makes artificial intelligence experts like Relay Therapeutics and Exscientia targets.

Rare Oracle deal would be anything but spontaneous

17 Dec 2021

The software group might spend $30 bln on healthcare IT specialist Cerner. That would mark a shift from buying back $100 bln of stock in four years. But Cerner has been in Oracle’s sights for nearly 20 years. It’s the last company still available on a longstanding shopping list.

Capital Calls: Chanel’s CEO pick

14 Dec 2021

Concise views on global finance: The privately-owned French fashion house appointed a Unilever executive as its new leader.

Visa-Mastercard payments duopoly has staying power

8 Dec 2021

The $770 bln duo’s shares are down 5% in 2021. Investors worry that Amazon and banks will negotiate sweeter terms, or that fintech will cut out middlemen. But even if they have to give up some revenue, none of the threats are existential. Current valuations are too pessimistic.

UK robot worker M&A ends in value destruction loop

1 Dec 2021

Fund administrator SS&C Technologies will pay $1.7 bln for London-listed Blue Prism, topping a bid from buyout firm Vista. To make a good return, it will have to find huge revenue boosters from selling the target’s automation software. A counteroffer may raise the stakes further.

Capital Calls: Wise, Swedish oil

30 Nov 2021

Concise views on global finance: The 8 bln pound money-changer raised its revenue targets; $10 bln Swedish oil company Lundin Energy may be considering M&A options.

Capital Calls: Software AG logs onto buyout boom

26 Nov 2021

Concise views on global finance: A subdued valuation and eager bidders increase the 3 billion euro German company’s chances of a possible sale.

Capital Calls: China’s data centre sale

24 Nov 2021

Concise views on global finance: Global Switch is attracting big-name private equity interest, but its quirky setup might justify suitors asking for a discount.

Ericsson makes puzzling $6.2 bln ascent into cloud

22 Nov 2021

That’s how much the Swedish telecom kit maker is paying for web-based communications firm Vonage. With few cost savings on offer CEO Börje Ekholm will take years to generate a decent return. Moving into a fast-growing but ultra-competitive sector highlights his need to diversify.