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Tech IPOs Scoring Higher Valuations in 2019 Than 2018

By Alfred Lee and Ross Matican · Jul 12, 2019 7:02am PDT · 2 comments
This year’s spate of tech IPOs has produced some misses, like Uber and Lyft, and some big hits like Zoom Video. But what was the overall pattern in the first half of the year?Despite the increased number of offerings, the average returns of IPOs so far this year mirror the impressive gains seen in the first half of 2018. And measured as a... This year’s spate of tech IPOs has produced some misses, like Uber and Lyft, and some big...
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Next Test for Tech IPOs: Lockup Expirations

By Ross Matican · Jun 25, 2019 10:16am PDT · 1 comment
Starting in September, a flood of shares in the newest public tech companies will hit the market as employees and pre-IPO investors—those who invested when the companies were private—are allowed to sell. That is likely to intensify volatility in tech share prices, putting pressure on weakly performing stocks like Uber and Lyft and... Starting in September, a flood of shares in the newest public tech companies will hit the market...
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Stock Comp Key to Amazon’s Low Tax Rate

By Martin Peers · Jun 21, 2019 7:01am PDT · 1 comment
Joe Biden joined a chorus of Amazon critics last week attacking the e-commerce giant for not paying enough in federal taxes. But Amazon’s effective tax rate is only a couple of percentage points below that of some other big tech companies. And they all benefit from the same thing: the tax deduction they get from paying employees heavily in... Joe Biden joined a chorus of Amazon critics last week attacking the e-commerce giant for not...
Chasing Amazon, Walmart’s Free Shipping Falls Short
By Priya Anand · Jun 10, 2019 10:00am PDT
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Chasing Amazon, Walmart’s Free Shipping Falls Short

By Priya Anand · Jun 10, 2019 10:00am PDT
Walmart is trying to catch up with Amazon in speedy shipping. New data show the Bentonville, Arkansas–based retailer has a long way to go.In January 2017, Walmart pledged to offer free two-day shipping on more than 2 million products—including everything from coffee to diapers. And last October it said it was expanding the range of... Walmart is trying to catch up with Amazon in speedy shipping. New data show the Bentonville,...
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Why Google’s Hopes for Cheap Pixel May Falter

By Aaron Tilley · May 31, 2019 10:01am PDT · 2 comments
Earlier this month Google released two new budget phones—the Pixel 3A at $399 and a bigger Pixel 3A XL at $479—to rave reviews from the tech press. Even though the device has a lower-end chipset than its pricier sibling and a plastic case without water resistance, it offers a nice camera on par with premium phones. Google’s aim... Earlier this month Google released two new budget phones—the Pixel 3A at $399 and a bigger...
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Tech, Media Layoffs Slow in April

By The Information Staff · May 30, 2019 1:18pm PDT
Technology and media companies announced 3,500 jobs cuts in April, a 59% drop from March that partly reflects the country’s robust employment picture, but nevertheless suggests the industries are still under pressure.Technology companies, including telecommunications, accounted for 3,105 of the announced layoffs while media companies said... Technology and media companies announced 3,500 jobs cuts in April, a 59% drop from March that...
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Rising Fees, Falling Audiences Highlight Pay TV Dilemma

By Jessica Toonkel · May 24, 2019 7:01am PDT · 5 comments
Cable channels have long been the cash machine for the entertainment industry thanks to a quirk in their business model. Cable and satellite TV firms pay channels fees for each subscriber who has the channels available in their service package, regardless of whether anyone watches the channels. AT&T, owner of DirecTV, is trying to change... Cable channels have long been the cash machine for the entertainment industry thanks to a quirk...
What Uber Tells Us About a Postmates IPO
By Priya Anand · May 22, 2019 7:01am PDT · 1 comment
Data Point

What Uber Tells Us About a Postmates IPO

By Priya Anand · May 22, 2019 7:01am PDT · 1 comment
Should Uber’s rocky initial public offering spoil the appetite of investors for Postmates, the meal delivery business expected to go public in the coming months? Uber, of course, is primarily a ride-hailing business, but the company’s Uber Eats meal delivery unit is its fastest growing segment, accounting for 13% of total revenue... Should Uber’s rocky initial public offering spoil the appetite of investors for Postmates,...
The trading floor of the New York Stock Exchange in New York. Photo by Bloomberg.
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How VCs Actually Cash In on an IPO

By Jessica E. Lessin and Mike Sullivan · May 10, 2019 7:02am PDT
Today, Uber is going public at a valuation of $82 billion, making a number of investors and early Uber employees very, very rich (or much, much richer). Benchmark will make $7.6 billion, based on the IPO price of $45; Google Ventures will make $3 billion. (Here’s a more complete list of some of the winners.)But how the general partners who... Today, Uber is going public at a valuation of $82 billion, making a number of investors and early...
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As Tech Firms Delayed Going Public, Pre-IPO Bonus Shrank

By Martin Peers · May 8, 2019 10:00am PDT · 3 comments
Some of Uber’s earliest investors could make more than 300,000% on their initial investment when the firm completes its closely watched IPO at the end of the week. But not everyone who owns Uber shares before the offering will do quite so well. In fact, the average price paid by investors who bought stock from the company before the... Some of Uber’s earliest investors could make more than 300,000% on their initial investment...
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Why Zoom’s IPO Success Signals Trouble for Uber

By Martin Peers · May 1, 2019 7:01am PDT · 7 comments
How is Zoom like Google?Both companies stand out from recent large tech IPOs in being financially self-sustaining without raising gobs of venture capital money. And that is very likely one of the reasons why Zoom stock has nearly doubled since its IPO earlier this month. It also highlights the challenge for Lyft and Uber, both of which raised... How is Zoom like Google?Both companies stand out from recent large tech IPOs in being financially...
A Chill for Acquisitions as Big Tech Scrutiny Intensifies?
By Nick Wingfield · Apr 23, 2019 6:31am PDT · 2 comments
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A Chill for Acquisitions as Big Tech Scrutiny Intensifies?

By Nick Wingfield · Apr 23, 2019 6:31am PDT · 2 comments
Last month, Elizabeth Warren, the Democratic senator from Massachusetts running for president, grabbed attention with a proposal to curb the power of big tech companies by pushing them to reverse past acquisitions. But large deals of the kind Sen. Warren targeted are rare among the Big Five—as Amazon, Apple, Facebook, Microsoft and... Last month, Elizabeth Warren, the Democratic senator from Massachusetts running for president,...
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Netflix Races to Make More Originals as Studios Pull Back

By Beejoli Shah · Apr 16, 2019 9:54am PDT · 1 comment
Disney’s unveiling of its upcoming streaming service last Thursday was a reminder of why Netflix has put so much effort into developing its own programming in recent years, making it less dependent on competing studios like Disney for content. But Netflix’s financial statements show that the streaming giant has a long way to go to be... Disney’s unveiling of its upcoming streaming service last Thursday was a reminder of why...
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How Lyft Trading Volumes Compare to Google and Twitter IPOs

By Amir Efrati · Apr 10, 2019 11:30am PDT · 3 comments
The inquest into how Lyft stock was pressured by short-sellers immediately after its IPO is far from over. But it is clear that trading volumes in Lyft in the first week after it went public were far higher than in the IPOs of Alibaba, Google, Facebook, Snap or Twitter, suggesting the Lyft aftermath is an historical anomaly.That’s... The inquest into how Lyft stock was pressured by short-sellers immediately after its IPO is far...
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Lyft Kicks Off Biggest Tech IPO Year Since 2014

By Priya Anand · Mar 29, 2019 6:31am PDT · 1 comment
Lyft’s public debut today kicks off what is shaping up to be the biggest year for tech IPOs since Alibaba went public in 2014. But it’s unlikely to surpass that bumper year, the biggest since the dot-com boom of 1999–2000.Tech and internet firms raised a total of $20.1 billion in 55 IPOs last year, according to Dealogic, up... Lyft’s public debut today kicks off what is shaping up to be the biggest year for tech IPOs...
Big Challenge for Disney and Apple Video Services: Churn
By Beejoli Shah and Martin Peers · Mar 26, 2019 6:31am PDT · 5 comments
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Big Challenge for Disney and Apple Video Services: Churn

By Beejoli Shah and Martin Peers · Mar 26, 2019 6:31am PDT · 5 comments
One of the key metrics behind successful subscription services is also one of the most secret numbers: the cancellation rate. New data reveals that number can be as high as 23% a month, a vivid illustration of the challenges for companies planning to offer new video services, which range from Disney to Apple to AT&T’s WarnerMedia.... One of the key metrics behind successful subscription services is also one of the most secret...
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Surprise Fans of TV Advertising? Smaller Tech Firms

By Nick Wingfield · Mar 21, 2019 6:32am PDT · 3 comments
As television advertising loses ground to digital ads, technology companies should be in the vanguard of businesses bailing from the medium. For many, the opposite is true, and it isn’t just Apple, Microsoft and other giants that are pouring more money into commercials. An array of smaller technology companies—from the online travel... As television advertising loses ground to digital ads, technology companies should be in the...
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Media Job Cuts Rise as Sector Retrenchment Persists

By The Information Staff · Mar 14, 2019 12:19pm PDT
Media job cuts rose in February, driven by reductions at news publishers and video game maker Activision Blizzard, as retrenchment in the sector persisted for a second month in 2019 and extended last year’s run of industry cutbacks.In total, 1,530 media job cuts were announced last month, up from 1,279 in January, according to data from... Media job cuts rose in February, driven by reductions at news publishers and video game maker...
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Amazon’s Ad Business Growth Outstrips Facebook and Google

By Priya Anand · Mar 12, 2019 6:48am PDT · 3 comments
Amazon’s ad business is growing fast—faster than Facebook and Google when they were at comparable sizes, according to third-party data and an analysis of company filings. If this continues, it could fuel criticism from political circles about Amazon’s expanding tentacles in different businesses.Amazon’s ad business... Amazon’s ad business is growing fast—faster than Facebook and Google when they were...
Netflix’s Price Increase History Shows Service’s Resilience
By Beejoli Shah and Martin Peers · Mar 6, 2019 6:32am PST · 3 comments
Data Point

Netflix’s Price Increase History Shows Service’s Resilience

By Beejoli Shah and Martin Peers · Mar 6, 2019 6:32am PST · 3 comments
Netflix has raised the price of its most popular streaming plan by 63% in the past eight years without suffering any meaningful pushback from subscribers. In fact, an analysis by The Information of its quarterly results shows growth has temporarily spiked after two of the price increases—the opposite of what would be expected.That suggests... Netflix has raised the price of its most popular streaming plan by 63% in the past eight years...