Technology

Deutsche Boerse data pivot comes at a price

27 Apr 2023

Boss Theodor Weimer is buying fund software firm SimCorp for 4 bln euros. Like peer LSEG, the German exchange is hoping a shift into the faster-growing data business will mean richer valuations. It’s a logical gamble, but such deals are expensive, and take time to pay off.

Meta is younger dog learning newer new tricks

26 Apr 2023

Mark Zuckerberg cut enough costs last quarter to bolster margins well past expectations, adding 12% to its $530 bln value in after-hours trading. That positions it nicely against competitors pivoting to AI. The issue is that Meta’s metaverse project doesn’t look as fresh.

TikTok ban is the least palatable of options

26 Apr 2023

Montana wants to block the Chinese-controlled short-form video service from operating in the state. The White House is mulling a similar strategy. But banning the app from 150 mln US phones is hard and legally fraught. Outside of a sale, a data privacy law is the best outcome.

Britain grabs mantle of chief Big Tech deal-slayer

26 Apr 2023

The UK competition watchdog vetoed Microsoft’s $69 bln purchase of “Call of Duty” owner Activision, rejecting the software giant’s promises. Takeovers by tech titans have fizzled under scrutiny from the EU and US. This decision makes it even harder to expand by acquisition.

Tech giants bury mediocre results under AI hype

25 Apr 2023

Microsoft and Alphabet beat low expectations, but slowing growth and penny-pinching to juice profit don’t make for the world-changing narrative tech investors usually crave. Touting the promise of artificial intelligence scratches that itch – and supports their valuations.

Coinbase will force SEC to quit ghosting crypto

25 Apr 2023

It’s been eight months since Coinbase asked securities watchdogs to clarify how digital assets will be regulated. Now the world’s second-largest crypto exchange is suing for an answer. The legal battle will decide the fate of the trillion-dollar cryptocurrency industry in the US.

EY’s split fiasco will spark slow-motion decline

25 Apr 2023

The audit giant’s bean-counters are insulated against a rapid loss of business after its failed breakup. But EY’s more profitable consulting arm, including its prize tax unit, is less so. More reticent new clients and staff may see the Big Four become the Big Three-and-a-half.

Data-hungry AI models could help Reddit valuation

21 Apr 2023

The rise of artificial intelligence models like GPT-4 has turned social media posts into valuable commodities. Twitter paywalled that data last month, and Reddit plans to follow suit – which could help boost its valuation ahead of a public market debut.

“Super Mario” augurs more media-gaming tie-ups

20 Apr 2023

Nintendo and Universal’s film adaptation of the hit video game franchise could rake in $1.5 bln. That’s a big victory for an industry whose spinoffs have more often been the butt of jokes. With gaming stocks having sold off sharply, there’s logic in more media giants plugging in.

US-China chip spat hangs over TSMC’s recovery

19 Apr 2023

Quarterly earnings at the Taiwanese giant are set to fall 5%, but demand should rebound soon. Beijing's retaliatory strategy against US chip sanctions is a bigger worry. Pressure on TSMC customers like Apple to shift orders to mainland suppliers would really hurt.

Capital Calls: Allianz’s fintech sale

19 Apr 2023

Concise views on global finance: The $100 bln insurer may offload its 5% stake in German digital banking startup N26, a decision that would make all kinds of sense.

Netflix clears streaming hurdle, by a hair

18 Apr 2023

The video service added fewer subscribers than hoped, but has levers to pull to increase value, like $6 bln from a shared account crackdown in North America. They’re small gains in a tough market, but as rivals struggle to control spending, Netflix has a competitive edge.

Cyberattack risks rise up company agendas

18 Apr 2023

Digital breaches and data theft were up 40% in 2022. As firms expand their digital network, the weaknesses criminals exploit will also grow, DXC Technology’s security expert Mark Hughes told The Exchange podcast. Defending against attacks will inevitably cost more.

Capital Calls: Bridal bankruptcy

18 Apr 2023

Concise views on global finance: David’s Bridal, which dresses one in four American brides, has filed for Chapter 11 bankruptcy for the second time in five years. Trends that push women to spend more on themselves suggest the chain would have better luck with bachelorettes.

Apple’s store push marks its big Indian wedding

18 Apr 2023

Dhol drums – a high-decibel feature of marriage celebrations – played in Mumbai as Tim Cook opened the company’s first store. A retail presence is mostly a symbolic gesture given India’s lower-middle income status. Yet selling more iPhones isn’t the only thing Cook has to gain.

Capital Calls: AI goes back to school

17 Apr 2023

Concise views on global finance: Chegg’s sagging shares perked up on news that the education software developer is working with ChatGPT maker OpenAI to create a safer automated tutor. For companies at risk of obsolescence, working with chatbots is a better bet than beating them.

Big Tech breakups: more antitrust than Alibaba

13 Apr 2023

The Chinese company’s six-way separation plans are renewing questions about the sprawl at Amazon, Alphabet and Meta. There’s less obvious strategic or financial upside to carving out AWS, YouTube or the metaverse. Competition authorities have their own agendas, however.

Bank mess hands tricky start to top Indian IT boss

13 Apr 2023

There’s no honeymoon for K Krithivasan, the incoming CEO at $145 bln Tata Consultancy. Like other outsourcers, it has struggled to retain workers. Now staff are squeezed by soaring rents in the country’s Silicon Valley. Cost pressures are rising just as US clients hit the brakes.

A rare Tata IPO signals India’s auto smarts

12 Apr 2023

Engineering outsourcer Tata Tech is helping China’s Nio and Vietnam’s VinFast roll out electric vehicles faster and cheaper. Its listing, the conglomerate’s first debut in 18 years, will be a leading indicator of India’s ability to drive a key part of the global auto industry.

Tech IPO freeze will thaw soon

11 Apr 2023

Late-stage tech companies such as Instacart and Reddit are procrastinating going public. But investors are antsy to cash out, employees are owed, and bankers are motivated. History suggests the window won’t stay shut past this fall, even if companies debut at lower valuations.