Technology

Parts makers offer safer Auto 2.0 bets than Tesla

1 Nov 2017

Elon Musk’s outfit trades at an outlandish valuation on hopes it’ll lead the electric and autonomous car revolution. Yet it routinely misses targets and faces intense competition. Battery makers like LG Chem and Tesla partner Panasonic may pave a less volatile road to riches.

Tencent’s hit spinoff reads like a prologue

1 Nov 2017

China Literature’s $1.1 bln IPO priced at the top of the range. That could encourage parent Tencent to list other units, which would both raise capital and lessen the regulatory scrutiny on some businesses. The most radical move would be floating crown jewel WeChat.

Emerson’s tilt at Rockwell lacks killer blow

31 Oct 2017

The rejected $28 bln offer for the U.S. automation group represents a premium of just 15 pct, paid partly in stock that has systematically undershot Rockwell’s. With valuations high, an all-cash bid might have tested the target’s independence. That looks beyond Emerson’s means.

WPP woes cement Mad Men bargain-basement valuation

31 Oct 2017

The group may cut targets for the third time this year. Advertising firms are grappling with frugal customers and online sales. Investors rate them as lowly as media dinosaurs like newspaper sellers. M&A options look tricky. Their best bet is to hope clients start spending again.

Sony’s success may delay further disentangling web

31 Oct 2017

The Japanese group riding high on Spider-Man is also thriving in games, chips and music. It now expects annual operating profit to hit a record $5.6 bln. That's testament to a long overhaul, but also increases a temptation to stay in areas like phones, TVs and financial services.

Samsung’s new bosses will have to be generous

31 Oct 2017

The tech giant is raising dividends to at least $26 bln through 2020. A tweaked returns policy also gives Samsung's three fresh CEOs-in-waiting and newly separate chairman room to hand back even more. That would help keep outside investors onside for an eventual restructuring.

Markets prove regulator’s point on Sprint/T-Mobile

30 Oct 2017

Antitrust authorities are skeptical a merger of the third and fourth U.S. wireless carriers will benefit the public. Verizon and AT&T shares fell on news the deal hit a snag. Investors are betting consolidation will produce higher industry profits at the expense of competition.

Nintendo plays its way toward market’s high score

30 Oct 2017

The Japanese company behind Super Mario Bros. hiked its annual forecast, catching up with bullish analysts. With projected Switch sales up to 14 mln, it's fresh confirmation of the console's success. That makes a valuation of 61 times expected earnings a little less cartoonish.

HNA takeover would be a gift for online also-ran

30 Oct 2017

The Chinese deal machine is in talks to buy e-commerce outfit Dangdang for up to $1.5 bln. A deal would add to an already eclectic conglomerate. It is not clear HNA needs a second-rate online retailer and this would be an expensive shortcut to buying tech talent.

Hong Kong’s dual-class plans go from bad to worse

30 Oct 2017

Shares with weighted voting rights could be heading for Hong Kong’s main board, says SCMP. A prior controversial plan proposed to insulate the wider market from governance headaches by hiving such stocks off in a separate venue. This latest idea is the greater of two evils.

It’s time for Alphabet to feature YouTube

26 Oct 2017

The platform is the leading U.S. video-streaming service, by one estimate, yet the Google parent provides few details. Its stock has underperformed rivals Netflix as well as Amazon and Apple, which are ramping up TV efforts. CEO Larry Page may want to shed more light on the unit.

Microsoft cashes in on corporate comfort

26 Oct 2017

Quarterly figures show a booming cloud business. The work world’s familiarity with Office, LinkedIn and other products makes it a natural supplier for many enterprises. This ease and economies of scale should enable the company to keep winning more of its customers’ computing.

China’s Baidu stumbles in getting back to basics

27 Oct 2017

Investors wiped $10 bln from the web giant’s market value after it forecast disappointing sales for the rest of 2017. Baidu has cut costs and narrowed its focus to revitalise its scandal-hit search business. Unfortunately that has yet to translate into less volatile results.

Heavy Amazon investment aims at rivals – and costs

26 Oct 2017

The $470 bln online giant’s third quarter again showed prodigious growth and a desire for more. CEO Jeff Bezos is pouring money into warehouses, gear and employees to beat Wal-Mart on the ground and Alphabet in the cloud. The bigger challenge may be outrunning rising expenses.

Twitter’s credibility is for the birds

26 Oct 2017

Jack Dorsey’s social network had to restate user numbers for three years. Quarterly ad revenue fell a whopping 8 pct. However, a promise of coming profitability has put investors in a tizzy. Cutting costs is a start, but it’s going to take more to mend Twitter’s broken wings.

Nokia joins Ericsson in Nordic doldrums

26 Oct 2017

The Finnish telecoms-kit maker’s shares slumped 15 pct after poor third-quarter results. They are trading at a discount to Ericsson’s stock despite improving margins. A warning on weak demand for its mobile-networks products shows tough market conditions trump good management.

Fiat Chrysler looks boxed in by M&A options

24 Oct 2017

Sergio Marchionne's revamp is picking up speed. But the carmaker is still worth little more than half the 40 bln euros at which the Agnelli family might consider a sale. That figure is beyond Chinese suitor Great Wall and a stretch for global peers. Fiat may be stuck where it is.

Infosys new-old saviour fails to make a splash

24 Oct 2017

Founder and returning Chairman Nandan Nilekani is throwing away revenue growth goals for India’s IT services group. He’s also putting past controversies over M&A and pay to rest. But details on a new strategy are light, a CEO search continues, and the board still needs a revamp.

Tencent’s books are less gripping than its games

24 Oct 2017

Publishing unit China Literature wants to list in Hong Kong at a value of up to $6.4 bln. Sales and earnings are taking off. But e-books are less lucrative than online games, with a smaller market and a shorter track record. This does not merit a valuation to match its parent.

AT&T’s debt burden will force stark choices

23 Oct 2017

Buying Time Warner will leave the telecom giant about $180 bln in hock. Cash flow from the HBO parent will help, but it needs to spend heavily on content and wireless technology. CEO Randall Stephenson may have to offload assets if he wants to maintain a big dividend.