Technology

Stitch Fix IPO fits better than Blue Apron

23 Oct 2017

The personal-clothing shopping service faces tough competition. Yet unlike the meal-delivery service whose public offering flopped in June, it has largely financed rapid growth through profit. Success depends on its shoppers and algorithms continuing to nail fickle fashion.

Masayoshi Son becoming one-man bubble-maker

23 Oct 2017

His sprawling SoftBank may be eyeing a second Vision Fund twice the size of its first yet-unspent $100 billion one. The extraordinary sums are bound to inflate already-frothy tech valuations. Excess capital combined with outsized ambition tends to have a predictable outcome.

Telecom stress can take Indian M&A to new heights

24 Oct 2017

A KKR-led consortium reportedly wants to merge two top telecom tower companies, and end up with 45 pct of the enlarged entity. It would be a monster transaction for private equity in India. The strategic rationale looks sound but fixing a valuation might be tricky.

Sea IPO lures investors angling for next big thing

20 Oct 2017

The Singaporean startup raised nearly $900 mln in a pricier-than-expected U.S. listing. That suggests investors looked past growing losses for fear of missing out on what could become Southeast Asia’s answer to Tencent or Alibaba. Those comparisons are a stretch.

Daimler’s reform drive lacks horsepower

20 Oct 2017

Bumper third-quarter sales do little to address the Mercedes parent’s long-term problems, which include a margin-sapping global shift to electric vehicles. Plans to split in three would lift valuations if that led to a separate listing. But progress is at walking pace.

Ericsson’s turnaround signal may weaken

20 Oct 2017

The telecom-kit maker’s results were less grim than expected, but sales are shrinking, and its operating margin is still feeble. New chief Borje Ekholm will struggle to meet his ambitious profit target unless he can shut – or find buyers for – its various loss-making units.

Riches and new rules weigh down China Mobile

20 Oct 2017

A price war and cuts to roaming fees have hit margins. But the biggest issue facing the $205 bln behemoth is its enormous cash hoard. That is the main reason China Mobile trades at a large discount to peers. Until shareholders see more of the cash, the valuation gap is justified.

Meituan orders up help to be China’s next web star

20 Oct 2017

The food-delivery to hotel-bookings startup raised $4 bln at a $30 bln valuation. Investors reckon Meituan-Dianping could be China’s next huge online platform. With scale benefits from offering many different services, and this warchest to fight off rivals, they could be right.

Lyft’s new $1 bln of cash spells gains over Uber

19 Oct 2017

The ride-hailing app has secured new funding led by Alphabet and a nearly 50 pct valuation increase. Its larger rival is struggling to regain momentum and is close to a down-round investment from SoftBank. Uber has the scale, but Lyft’s less aggressive approach is paying off.

Exchange Podcast: Scott Galloway

19 Oct 2017

The NYU marketing guru swung by Times Square to discuss what's next for "The Four" tech behemoths - Google, Apple, Amazon and Facebook. Among his predictions: one of them will be hit with a $10 bln-plus antitrust fine and Amazon will choose New York for its second headquarters.

HP Enterprise shows breakups can fail to shine

19 Oct 2017

Activists often prod companies to hive off promising businesses from boring cash cows. HP’s split shows the distinction isn’t always clear. The “exciting” servers and networking offshoot is returning more capital as expansion stalls while growth stirs at the PC and printer outfit.

PayPal’s future rests on striking quadruple whammy

19 Oct 2017

The $80 bln payments firm is worth as much as Amex and has a higher multiple than Visa or MasterCard. Justifying that means renewing its deal with ex-owner eBay, nailing lending and expanding its popular Venmo app to merchants. For now, PayPal looks well-positioned to succeed.

ICOs validate old-school “follow the money” mantra

19 Oct 2017

One of the biggest so-called initial coin offerings to date, $230 mln for what are known as tezzies, has led to a spat between its architects and a Swiss foundation that controls the digital cash. Where crowd-funding and crypto-currencies meet IPOs, traditional motivations apply.

iPhone boost is prelude to bumper year for TSMC

19 Oct 2017

Quarterly results show the leading contract chipmaker recovering after a lacklustre first half, aided by Apple's new iPhones. TSMC's next task is to gain a lead in a new generation of even smaller semiconductors. It looks well positioned to stay ahead of emerging rival Samsung.

Qudian IPO feeds debt-hungry Chinese millennials

18 Oct 2017

The online lender backed by e-commerce giant Alibaba’s financial arm has priced its U.S. listing above expectations, says Reuters. It boasts fast growth, low defaults and - shockingly for tech - profitability. As young Chinese shoppers rack up debt, Qudian will keep earning.

China’s iQiyi is like Netflix with extra challenges

17 Oct 2017

The Chinese video-streaming service is eyeing a debut on U.S. markets next year and already inviting comparisons to its American partner. Both are burning cash on new content to lure fans. Fickle consumers and limited appeal abroad stand in the way of a $10 bln-plus valuation.

Netflix valuation outstrips burgeoning opportunity

16 Oct 2017

The $86 bln video-streaming service hit an all-time high after Comcast and AT&T warned of a fall in subscribers. Pay-TV customers cutting the cord should mean more viewers for Netflix. But even that and a recent fee hike don’t justify the firm trading at a sky-high multiple.

Toshiba chips let Bain surf a Big Data wave

16 Oct 2017

A group led by Bain is paying $18 bln for Toshiba’s flash-memory unit after a drawn-out sale. The memory industry is cyclical and capital-intensive, and it's also in China’s strategic crosshairs. But a rising tide of demand for bytes will lift Bain's boat first.

Warning signs flash at Samsung after big quarter

13 Oct 2017

The tech group's top executive unexpectedly resigned following record-smashing forecasts for operating profit. An early lead in memory chips has fuelled blistering earnings growth at Samsung despite legal woes. But as rivals circle, a widening leadership vacuum looks worrying.

Viewsroom: Activists keep the fight alive

12 Oct 2017

Nelson Peltz narrowly lost his acrimonious bid for a P&G board seat. Honeywell’s decision to spin off two small units was less than Dan Loeb lobbied for. These are temporary setbacks. Past experience and their financial firepower make shareholder activists a powerful force.