Software

Elliott returns to haunt backsliding Citrix

9 Sep 2021

The investor sold out in 2020. Since then, the enterprise-software group's shares have slipped 25% despite a pandemic tailwind. Now Elliott is back with a stake worth more than $1 bln and a similar list of gripes. If it worked once, the rare activist double-dip could work again.

Chancellor: Tech growth comes at irrational price

9 Sep 2021

So overwhelming is the desire to find the next Alphabet, Amazon or Facebook that investors are giving nosebleed valuations to just about any software firm offering cloud-based services. The discount rates by which these enterprises are valued make no sense. Caveat speculator.

Capital Calls: AMC, German pet retailer

8 Sep 2021

Concise views on global finance: The movie theater chain enjoyed bumper Labor Day attendance; a trio of private equity suitors are circling Zooplus.

Capital Calls: UK interventions, Post-virus reset

7 Sep 2021

Concise views on global finance: U.S. bidder TransDigm’s withdrawal from the $8.7 bln race for Meggitt removes a tricky decision for the government; Boris Johnson’s new proposals will address social care but not generational wealth divides.

Electric vehicles will short-circuit car dealers

7 Sep 2021

Booming auto sales have buoyed shares in middlemen like $7.6 bln U.S.-based AutoNation and $357 mln UK-listed Pendragon. Battery rides need fewer parts and rely on over-the-air software updates. That’s great for carmakers but means dealerships risk becoming glorified garages.

VW-style tech hype calls for defensive driving

6 Sep 2021

CEO Herbert Diess says the “gamechanger” for his industry will be software and autonomous cars, with the former a $1.4 trln global market by 2030. Such a Panglossian take relies on fleets of robo-taxis and driver-downloads galore, plus manoeuvring past tech leaders like Alphabet.

Capital Calls: New York City is on climate notice

2 Sep 2021

Concise views on global finance: Cities with a higher number of wealthier residents will be able to combat climate related events.

South Korea’s app-store sandbox is worth watching

1 Sep 2021

A new bill stops Apple and Google from forcing local developers to use their payment systems, which carry hefty commissions. It’s good for the country’s tech champions, like the $60 bln Kakao. But it’s only worth copying elsewhere if users end up with cheaper or better services.

Xiaomi is primed to scale Mount Microchip

26 Aug 2021

The $82 bln Chinese company shipped 53 mln handsets in the second quarter, overtaking Apple to become the world’s No. 2 producer behind Samsung. With greater heft, boss Lei Jun’s ambitions in semiconductors should be within reach soon. Favourable policies from Beijing will help.

Dating outscores gaming in app store showdown

25 Aug 2021

A U.S. judge is considering an antitrust suit against Apple’s online shop as lawmakers pile pressure on the iPhone maker and rival Google. Despite games dominating their outlets’ $111 bln in annual sales, a cut in the tech giants’ 30% fee may boost daters like Match more.

Norton’s UK cyber raid yields risky bounty

11 Aug 2021

U.S. internet security firm NortonLifeLock has snapped up London-listed Avast for up to 6.2 billion pounds. The premium looks measly and cost savings meaty. But what appears to be a treasure trove for Norton CEO Vincent Pilette comes with long-term competitive threats.

Capital Calls: Grab, Gaming, SocGen, Stellantis

3 Aug 2021

Concise views on global finance: The Southeast Asian super-app delivers some of the goods; Tencent shares tank after Chinese state-media criticism; the French lender’s investment bank overhauls goals; the carmaker hikes operating margin targets to a chunky 10%.

IPO U-turn is probably Didi’s most sensible route

29 Jul 2021

The beleaguered $40 bln Chinese ride-hailing group denied a report that it plans to go private a month after its U.S. debut. Changing course would be embarrassing and quite costly. But it may be the best way to get back in Beijing’s good graces amid a continuing crackdown.

Slimdown can help Worldline get fit for M&A battle

27 Jul 2021

The $26 bln Paris-listed payments group may sell a unit that makes handheld kit for card transactions. A sale could boost its shares and raise $5 bln to replenish CEO Gilles Grapinet’s war chest. That would help him hoover up smaller players and fend off rivals like Italy’s Nexi.

Capital Calls: Twitter, Domino’s Pizza

22 Jul 2021

Concise views on global finance: Jack Dorsey’s social network reported a 74% bump in revenue despite a slowdown in adding new users; meanwhile, Domino’s Pizza shows one thing that hasn’t abated in 2021 is customers’ love of takeout pies.

European tech titans’ sweet spot may turn sour

21 Jul 2021

Both $300 bln ASML and $170 bln SAP upped their revenue-growth projections. They’re riding trends like soaring demand for chips and cloud computing. But much of the good news is already priced in to their expensive shares. The next surprise for investors may be less encouraging.

Zoom kicks off expensive call centre M&A contest

19 Jul 2021

The videoconferencing star will pay $14.7 bln for software group Five9. Diversifying makes sense as economies reopen, but a thin 13% premium may invite counterbids, or prod rivals like Microsoft to partner up too. Rich prices and fuzzy synergies promise an uncertain payoff.

Chancellor: Robinhood is more sheriff than rebel

15 Jul 2021

Like its many antecedents during previous bubbles, the app-based stockbroker claims a mission to “democratise finance for all”. But the $40 bln startup is more a creature of Wall Street and Silicon Valley than its clients may understand. The long-term risk is a people’s revolt.

Norton UK cyber deal has many vulnerabilities

15 Jul 2021

The U.S. antivirus software group is in talks about a cash and stock offer for $7.2 bln London-listed rival Avast. But probable returns look low, and British investors may not want a large slug of American equity. If a private equity buyer gets involved, it will be even harder.

Europe’s Zoom finds home-working boom has downside

8 Jul 2021

TeamViewer lost $1 bln of market value after it said customers who panic-bought last year are now paying less. The remote-software group’s shares have retraced to pre-Covid levels. The whole episode distracted from its real goal: connecting machines, rather than people.