Software

China bike-sharing turns into VC pileup

2 Mar 2017

Startups Mobike and ofo have raised huge sums. But a glut of venture capital sloshing around, combined with misguided state support for entrepreneurship, has attracted a parasitic swarm of competitors too. Without policy changes, investors could suffer, as could the public good.

Market delivers crazy love letter to China’s FedEx

2 Mar 2017

A rally in the newly listed firm behind SF Express makes boss Wang Wei one of China's richest men. At roughly $40 bln, his company is now worth nearly as much as Deutsche Post. That looks like an overreaction, driven by hype over e-commerce and a shortage of tradeable shares.

China’s unicorn shortcut sidelines IPO reform

27 Feb 2017

The securities watchdog is mulling faster listing approvals for big tech firms. Letting Jack Ma's $60 bln Ant Financial jump the queue may convince other entrepreneurs to follow, eschewing New York and Hong Kong. But this would be a poor substitute for meaningful IPO reform.

Apple working harder to squeeze iPhone juice

31 Jan 2017

The company sold more phones in the holiday quarter, yet profit fell. A saturating market and slowing innovation aren't helping margins. Yet Apple's size, the prospect of a new phone and the ability to sell additional services are bright spots that should keep investors on board.

Microsoft and Google keep fog around cloud growth

26 Jan 2017

Quarterly results show both firms' on-demand computing units are growing fast. The tech giants are pouring resources into their divisions, as profit is correlated with scale. Microsoft and Alphabet are stingy, however, on essential financial details. These units merit more sunshine.

LeEco’s $2 bln rescue rewards bad habits

16 Jan 2017

Property developer Sunac is ploughing funds worth more than half its market value into the overstretched TVs-to-electric cars group led by billionaire Jia Yueting. The partnership makes Jia's earlier pledge to slow down sound unconvincing, and could lead Sunac astray too.

Tencent heads for high score in gaming M&A

29 Dec 2016

China's biggest tech company will look abroad for growth in 2017. It will probably follow its $9 bln purchase of mobile hit-maker Supercell with similar-sized deals. But these will barely move the needle. A bolder move would be to bid for U.S. heavyweight Activision Blizzard.

Nintendo’s ups and downs reflect puzzle for market

20 Dec 2016

The delivery on "Super Mario Run", a crucial step into mobile gaming, looks poor. Making a successful leap to this new platform is key for Nintendo. But the shares have gone on a round trip, suggesting investors are struggling to decode what they've seen so far.

CEOs don’t deserve bonuses just for going shopping

1 Dec 2016

Activision's Bobby Kotick will receive an extra payout for doing a "transformative" deal. Investors have to benefit, but only for a limited time. Sensible M&A is part of what CEOs are already paid for. There's no need to reward them twice – or to encourage risky acquisitions.

Microsoft has yet to earn itself an Amazon pass

20 Oct 2016

The internet retailer's owners embrace cloud computing because it's expanding top and bottom lines. Microsoft's tough task is to convince investors that sacrificing profitability to build up the business is worthwhile. Growth like this quarter's makes that easier to pull off.

NetSuite shareholders have Oracle over a barrel

12 Oct 2016

Few have backed the software giant's $9.3 bln bid. Oracle, whose chairman Larry Ellison owns a 40 pct stake in NetSuite, says it's the final offer. But the company needs NetSuite's cloud skills and fast growth. That makes an Oracle price hike more likely than a squelched deal.

China’s startups have few good options left

20 Sep 2016

A slowdown in venture capital is squeezing smaller tech hopefuls. Many have flocked to the "New Third Board" but it's hard to raise new equity on this moribund over-the-counter market. Some cash-strapped groups may sell out to larger rivals, or cut costs and hope for the best.

Meg Whitman’s simplifying job gets more complex

7 Sep 2016

After first splitting Hewlett-Packard, the HP Enterprise boss is now attempting her second spinoff. The transaction uses a messy structure but if it works would fetch $8.8 bln for the software division tax-free. Even a smaller HPE, however, will be plagued by hardware deflation.

Beauty of selfie-app IPO is only skin deep

24 Aug 2016

Millions of young Chinese use Meitu to airbrush pictures, whitening their skin or applying virtual makeup. But the company is basically a small smartphone business made up to look like a big Internet player. A $700 mln Hong Kong IPO should be seen through a sceptical lens.

Oracle-NetSuite deal may be sweetest for Ellison

28 Jul 2016

The business-software company is paying $9.3 bln, a whopping 44 pct premium, for a cloud-computing company effectively controlled by the Oracle CEO. The deal makes strategic sense, but Ellison looks to be once again cashing in on a side investment at Oracle's expense.

Apple’s muted results belie building pressure

26 Jul 2016

With little reason for customers to update their iPhones, the $520 billion firm led by Tim Cook again reported declining quarterly sales. Yet favorable forces pile up with each mediocre result - existing handsets are aging, services growing, and investor expectations falling.

Microsoft makes partial amends for LinkedIn folly

19 Jul 2016

Its enterprise and cloud software businesses are growing quickly, and CEO Satya Nadella is wisely investing. Meanwhile, "More Personal Computing" – a grab bag for phones, games and search – saw margins rise even as sales fell. If only Microsoft showed similar discipline in M&A.

EMC owners shift concerns from Dell to VMware

19 Jul 2016

The storage maker's shareholders overwhelmingly backed a sale to the PC producer, cementing a deal once valued at $67 bln. Now they have to get comfortable with the untested VMware tracking stock they'll receive. For now, the implied discount of nearly 50 pct makes sense.