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Tech

Apple collects Big Tech quarterly earnings Oscar

28 Apr 2022

The $2.6 trln iPhone maker’s financial report for January to March showed it had a winning season compared to its Big Tech fellows. CEO Tim Cook’s business got less of a Covid boost than, say, Amazon, and had early supply-chain jams. Now it’s more than catching up.

Amazon takes hit from foggy outlook

28 Apr 2022

The e-commerce giant shed nearly $140 bln in market value after it forecast sluggish sales growth. The pandemic was good for Amazon and other online retailers. Now, while cloud services remain a bright spot, shipping, wage costs and macroeconomic factors are stumbling blocks.

Musk has at least three Twitter problems to fix

28 Apr 2022

In the first quarter, the $37 bln network’s expenses rose twice as fast as revenue. Users were up 16%, but Twitter admitted it had mistakenly puffed those up in the past. Plus, still it hasn’t proven it can be regularly profitable. That all takes attention Musk may not have.

South Korea Inc heaps added pressure on Samsung

28 Apr 2022

The Galaxy maker’s 51% rise in quarterly operating profit, to $11 bln, only underscores its dependence on memory chips. Despite its ambitions in autos, biotech and other areas, peers Hyundai, SK and LG are moving faster to capitalise on new markets. Idle cash is a growing risk.

Elon Musk probably won’t buy Twitter

27 Apr 2022

Sure, the Tesla boss will be on the hook for at least $1 bln if he walks away from the $44 bln deal. But shares in his electric-vehicle firm could rise by more than he loses. The risks to Musk’s China business, regulatory pushback, and Musk’s general flightiness further lengthen the odds.

Big Tech’s growth story faces a one-two punch

26 Apr 2022

Inflation means advertisers and subscription clients have less money to spend at places like Google and Microsoft. Meanwhile, a tight labor market makes hiring more difficult and expensive. Without new business to sell or people to sell it, tech companies lose their shine.

Musk Twitter bid becomes less virtual, more risky

21 Apr 2022

The Tesla CEO says he’ll put up almost half the $46.5 bln needed to buy the social network and borrow $13 bln against his stock in the carmaker. Banks will lend $13 bln. If all goes well, he makes a private equity-style return. Twitter’s poor cash flow means lots could go wrong.

Twitter’s scarce suitors, Didi’s New York exit

21 Apr 2022

As Elon Musk dangles a $41 billion offer, Breakingviews columnists discuss whether anybody will end up buying the social network in this Viewsroom podcast. Plus, the Chinese ride-hailing firm cancels its U.S. listing less than a year after arriving, leaving shareholders stranded.

Indonesia’s EV dream gets $15 bln spark of reality

20 Apr 2022

South Korea’s LGES, China’s CATL and partners plan to build comprehensive battery supply chains in the country. That’ll please Jakarta, whose bold electrification goals need industry buy-in. With supply chains stressed, it’s a well-timed boost for the wannabe production hub.

Didi’s peers will pay price of New York debacle

19 Apr 2022

The Chinese ride-hailing group is planning a U.S. exit less than a year after arriving. But shareholders, who have seen the stock fall 85% since the disastrous IPO, have no guarantee of an exit afterwards. The corporate wreck will taint other mainland firms eyeing the Big Board.

Twitter’s habitat lacks natural predators

18 Apr 2022

Elon Musk’s $41 bln bid has put the social network in play, but closing a deal is harder. The Tesla boss may struggle to recruit partners, while meager earnings make it a stretch for private equity. Tech giants face antitrust concerns and toxic content will put off media suitors.

Chinese firms’ New York exit hits tricky new phase

13 Apr 2022

Quora-like Zhihu won’t raise a cent from its Hong Kong float, the first so-called homecomer to eschew the chance. It won’t be the last: Many of them are, like the $1.4 bln Q&A forum, cash rich. But insiders are selling. That can weigh on valuations, hurting regular investors.

Capital Calls: GoTo debuts in smart fashion

11 Apr 2022

Concise views on global finance: The Indonesian e-commerce, ride-hailing and financial technology firm, valued at $28 bln, jumped more than 20% in opening trade on its first day in Jakarta.

Shanghai Covid crisis puts China tech on eggshells

11 Apr 2022

City officials have called on food delivery apps from $123 bln Meituan and rivals to help feed 26 mln residents under strict lockdowns. It’s a chance for the companies to win political brownie points and new users. But the logistical challenges risk putting both out of reach.

Capital Calls: Credit Agricole’s Italian job

8 Apr 2022

Concise views on global finance: The French lender buys a 9% stake in Italy’s Banco BPM, making it harder for local rivals to launch a bid.

Capital Calls: Buffett’s HP bet, Gambling M&A

7 Apr 2022

Concise views on global finance: Berkshire Hathaway takes a hefty stake in the computer and printer maker; Betting group 888 negotiates a better price for buying UK bookie William Hill.

China’s NFTs face long digital purgatory

1 Apr 2022

Blockchain-based assets are catching on with companies like Xtep, which just released metaverse sneakers. Beijing bans cryptocurrencies, however, meaning apps only accept yuan and curb reselling. Absent sanctioned secondary markets, collecting will be merely a token gesture.

Apple Pay push is scarier for fintechs than banks

31 Mar 2022

The $2.9 trln iPhone maker is beefing up its in-house financial tools and muscling into consumer credit, Bloomberg reported. That’s bad news for technology partners and pay-later rivals. Lenders have less to fear: underwriting big loans isn’t lucrative enough to appeal to Apple.