True Value

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Salesforce CEO Marc Benioff. Photo by Bloomberg.
True Value

Why Salesforce Stock Has Lost its Edge

By Ross Matican · Jul 23, 2019 7:01am PDT
Salesforce, once the fast-moving disrupter of the enterprise software sector, is showing its age.After years of outperforming the broader tech sector, Salesforce shares are up just 6% in the past six months while the Nasdaq is up 17%. That likely reflects a worry among investors that a slowing growth rate is prompting Salesforce to make bigger... Salesforce, once the fast-moving disrupter of the enterprise software sector, is showing its age....
Photo: Bloomberg
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Slack Listing Will Test Wall Street Demand for Software Stocks

By Alfred Lee · Jun 6, 2019 7:00am PDT · 1 comment
Slack’s planned public listing later this month will be the next big test of Wall Street’s demand for tech stocks. Recent IPOs, of Uber and Lyft in particular, have disappointed. But Slack has the advantage of being in a sector—subscription software—that is a hot favorite with investors right now.The question is whether... Slack’s planned public listing later this month will be the next big test of Wall...
Photo by Bloomberg.
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What Lyft and Uber Are Really Worth

By Amir Efrati and Jessica Toonkel · Apr 17, 2019 6:31am PDT · 6 comments
With the 20% plunge from its offering price since its IPO, Lyft joins a large group of big-name tech IPOs that have slumped out of the gate, including Facebook, LinkedIn and Etsy. One of the big questions now is whether Lyft turns out to be like Facebook or Etsy, whose stock recovered and eventually turned into a winner, or like Blue Apron whose... With the 20% plunge from its offering price since its IPO, Lyft joins a large group of big-name...
Roku CEO Anthony Wood. Photo by AP
Why Roku Acquisition Could Make Sense for Disney or Walmart
By Tom Dotan · Mar 19, 2019 12:41pm PDT · 3 comments
Roku CEO Anthony Wood. Photo by AP
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Why Roku Acquisition Could Make Sense for Disney or Walmart

By Tom Dotan · Mar 19, 2019 12:41pm PDT · 3 comments
A few years ago, when Roku was still a private company with uncertain prospects, it would occasionally get acquisition offers from bigger companies. CEO Anthony Wood was never interested. Even when the streaming device maker was worth around $1 billion, he argued that one day he expected it to be worth 10 times that much, according to a person... A few years ago, when Roku was still a private company with uncertain prospects, it would...
Lyft CEO Logan Green. Photo by Bloomberg
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Lyft’s Numbers Point to Potential $26 Billion IPO Valuation

By Amir Efrati and Cory Weinberg · Mar 1, 2019 2:59pm PST · 1 comment
U.S. ride-hailing firm Lyft appears set to surpass its sought-after IPO valuation range of $20 billion to $25 billion, based on our analysis of its IPO filing on Friday. It could be valued at between $26 billion and $28 billion, given the company’s robust revenue growth in the fourth quarter. (See related article here.)That’s... U.S. ride-hailing firm Lyft appears set to surpass its sought-after IPO valuation range of $20...
Disney CEO Bob Iger. Photo by Bloomberg
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Streaming Video’s New Math

By Martin Peers · Feb 13, 2019 6:32am PST · 6 comments
As several of the big entertainment companies move toward the launch of Netflix-like video streaming services, the big questions for investors are how big a business will they build—and how much money will they lose along the way.To get a sense of that, we dug into some numbers. Consider this: To cover what we estimate could be the... As several of the big entertainment companies move toward the launch of Netflix-like video...
Time Warner's then CEO Jeff Bewkes, in the foreground, with AT&T CEO Randall Stephenson at a congressional hearing in December 2016. Photo by Bloomberg
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How Time Warner Shareholders Lost M&A’s Game of Thrones

By Martin Peers · Jan 24, 2019 10:01am PST · 1 comment
When big company mergers go south, it’s usually the buyer who has regrets. But in the case of AT&T’s $81 billion purchase of Time Warner, it is the sellers who are now likely to be feeling remorseful.Time Warner shareholders received a price for their stock 6.5% below what was announced, thanks to a blunder made by Time Warner... When big company mergers go south, it’s usually the buyer who has regrets. But in the case...
Photo by Shutterstock.com
Social Media Backlash Leaves Pinterest Vulnerable
By Alfred Lee · Jan 9, 2019 7:01am PST · 6 comments
Photo by Shutterstock.com
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Social Media Backlash Leaves Pinterest Vulnerable

By Alfred Lee · Jan 9, 2019 7:01am PST · 6 comments
A big question hanging over the tech industry is how this year’s hotly anticipated IPOs will perform in the face of a tumultuous stock market. Among the expected major public offerings, one stands out as particularly vulnerable to recent market swings: Pinterest. Given the big stock slides of fellow social media companies Facebook, Twitter... A big question hanging over the tech industry is how this year’s hotly anticipated IPOs...
An Uber pickup zone at a shopping mall in Maryland. Photo by AP
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Uber’s Confidential Documents Show Path to $90 Billion IPO

By Amir Efrati · Jan 7, 2019 7:01am PST · 3 comments
When Wall Street banks last fall were pitching to take Uber public, some suggested the ride-hailing giant could hit the public market with a valuation of $120 billion. But given how much valuations have fallen with the stock market slump in recent weeks, Uber is more likely to fetch a valuation of a little less than $90 billion. That still would... When Wall Street banks last fall were pitching to take Uber public, some suggested the...
AT&T communications CEO John Donovan. Photo by Bloomberg
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AT&T Gears Up for Battle as Program Deals Come Up

By Jessica Toonkel · Nov 16, 2018 7:00am PST
AT&T, fresh off its acquisition of Time Warner, is gearing up for what could be a series of bloody battles with rival media giants, as it seeks to cut programming costs at its DirecTV satellite and streaming video division. The outcome could affect the shape of the TV industry for years to come.Several major media companies, including Fox,... AT&T, fresh off its acquisition of Time Warner, is gearing up for what could be a series of...
Elastic executives celebrate the company's initial public offering earlier this month. Photo by Bloomberg
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After IBM-Red Hat, Which Open-Source Companies Are Next?

By Kevin McLaughlin · Oct 30, 2018 7:01am PDT · 2 comments
With IBM’s $34 billion acquisition of Red Hat, open-source software—once one of the biggest threats facing traditional enterprise technology companies—has become a hot commodity. It is just a matter of time before more open-source companies are gobbled up. This year has already seen three other major open-source deals:... With IBM’s $34 billion acquisition of Red Hat, open-source software—once one of the...
Disney CEO Bob Iger. Photo by Bloomberg
Disney’s Next Challenge: Managing Internal Conflicts Over Streaming
By Tom Dotan and Jessica Toonkel · Oct 25, 2018 7:00am PDT
Disney CEO Bob Iger. Photo by Bloomberg
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Disney’s Next Challenge: Managing Internal Conflicts Over Streaming

By Tom Dotan and Jessica Toonkel · Oct 25, 2018 7:00am PDT
As Walt Disney Company speeds along with its plans to launch new streaming services, it faces a fundamental challenge: how to more directly compete with Netflix without undermining its traditional TV networks.One area where the potential for internal conflict could become clear is in executive compensation. Disney is discussing using streaming... As Walt Disney Company speeds along with its plans to launch new streaming services, it faces a...
Tencent Music's QQ music streaming app on a phone in China last March. Photo by AP
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Does Tencent Music Deserve a Spotify-Like Valuation?

By Alfred Lee and Wayne Ma · Aug 17, 2018 7:01am PDT · 3 comments
China tech IPOs, of companies such as Xiaomi and Pinduoduo, have struggled this year. That puts the spotlight on the next big U.S. public offering from China, which is likely to be Tencent Music Entertainment Group, China’s answer to Spotify. Its valuation has soared on private tech markets lately, suggesting that investors anticipate its... China tech IPOs, of companies such as Xiaomi and Pinduoduo, have struggled this year. That puts...
An AMC theater in Santa Monica, California. Photo by Bloomberg
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Why Movie Theaters Should Applaud MoviePass

By Matt Pressberg · Aug 10, 2018 3:29pm PDT · 1 comment
MoviePass’ effort to make a Netflix-like subscription service out of movie theater tickets has bled the company of cash in recent months. But while its future may be in doubt, the movie-ticket subscription concept it pioneered looks like it is here to stay.Several theater chains, including AMC and Cinemark, in recent months have introduced... MoviePass’ effort to make a Netflix-like subscription service out of movie theater tickets...
An Imax theater in Bengaluru, India. Photo: VR Bengaluru
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Imax’s Best Feature: Global Expansion

By Matt Pressberg · Jul 11, 2018 10:01am PDT
Movie theater stocks like AMC and Cinemark slumped last spring and haven’t recovered, thanks to a historically bad summer movie season, the rise of streaming services and even dying shopping malls, which have reduced foot traffic. Among those hit by the sell-off was Imax, the company responsible for giant screen movies.But Imax isn’t... Movie theater stocks like AMC and Cinemark slumped last spring and haven’t recovered,...
Snap stock details on display at the New York Stock Exchange last year. Photo by Bloomberg
Why Snap Should Tap Apple or Tencent for Cash
By Tom Dotan · Jun 4, 2018 7:01am PDT · 1 comment
Snap stock details on display at the New York Stock Exchange last year. Photo by Bloomberg
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Why Snap Should Tap Apple or Tencent for Cash

By Tom Dotan · Jun 4, 2018 7:01am PDT · 1 comment
Snap built a business on messages that disappear. But to keep the business going it needs to make sure its cash doesn’t. The company burned through $1.1 billion in the last five quarters, just on running its business (it spent more cash on acquisitions). At that rate, and with just $1.8 billion left, Snap will likely need to raise more... Snap built a business on messages that disappear. But to keep the business going it needs to make...
The New York Stock Exchange on the day that Spotify went public. Photo by Bloomberg.
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Why Uber and Airbnb Should Copy Spotify with a Direct Listing

By Serena Saitto · May 4, 2018 7:01am PDT · 1 comment
A month after debuting on the New York Stock Exchange by going public without selling new shares—an unprecedented direct listing—it is clear that Spotify’s experiment was a success. The Swedish music streaming company is trading 21% higher than where its stock traded in the private market immediately before its public listing.... A month after debuting on the New York Stock Exchange by going public without selling new...
GoPro CEO Nick Woodman at an event last September, unveiling a new version of its Hero wearable action camera. Photo by Bloomberg.
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GoPro’s Stock Rests on Potential Sale

By Alfred Lee · Apr 12, 2018 9:48am PDT
GoPro’s stock has hurtled downhill this year, not unlike one of the thrill-seeking mountain bikers who put on its wearable cameras before taking the plunge. Shares are down 36% in 2018, cutting its market capitalization to roughly $700 million. GoPro investors now have to hope the company will get acquired to see any lift in the price.In a... GoPro’s stock has hurtled downhill this year, not unlike one of the thrill-seeking mountain...
Photo: AP
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Uber, Lyft Face Growth Ceiling

By Amir Efrati · Apr 4, 2018 7:02am PDT · 4 comments
Several executives and key investors of Uber and Lyft estimate that annual revenue the companies generate in the U.S. from their core ride-hailing business will at most grow sixfold in the coming years before leveling off. That’s a much slower growth trajectory than what they were predicting a year or two ago, and it could translate into... Several executives and key investors of Uber and Lyft estimate that annual revenue the companies...
A Roku streaming device and remote control. Photo by AP
Despite High Stock Price, Roku Is No Netflix
By Tom Dotan · Mar 13, 2018 10:52am PDT · 4 comments
A Roku streaming device and remote control. Photo by AP
True Value

Despite High Stock Price, Roku Is No Netflix

By Tom Dotan · Mar 13, 2018 10:52am PDT · 4 comments
Of all the tech companies that went public last year, Roku may have been the biggest surprise hit. Having made itself almost as synonymous with fast-growing streaming video as Netflix, Roku’s stock soared as high as $50 from an IPO price of $14. Even after a recent sell-off, sparked by slowing sales in the fourth quarter, Roku’s... Of all the tech companies that went public last year, Roku may have been the biggest surprise...