True Value

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TripAdvisor CEO Stephen Kaufer. Photo by Bloomberg.
True Value

In Battle for Online Travel Market, TripAdvisor Has Edge

By Martin Peers · Mar 18, 2015 1:02pm PDT
Online travel bookings has to be one of the most commoditized and over-crowded markets on the Web. The points of differentiation tend to be which hotels a site represents, or the consumer-friendliness of its software, neither of which seem a long-lasting guarantee of success. That’s why TripAdvisor, the travel review site, deserves some... Online travel bookings has to be one of the most commoditized and over-crowded markets on the...
Photo by Bloomberg.
True Value

Wi-Fi’s Threat To Cellular May Be Overstated

By Martin Peers · Mar 12, 2015 10:00am PDT · 3 comments
One of the subtle jokes in Woody Allen’s 1972 pre-mobile phone era film “Play It Again, Sam” concerns a character’s habit of calling his office to pass on the various phone numbers at which he can be reached through the day. Its a joke that might become relevant again as Wi-Fi based wireless services, requiring people to plan ahead for Wi-Fi... One of the subtle jokes in Woody Allen’s 1972 pre-mobile phone era film “Play It Again, Sam”...
Facebook CEO Mark Zuckerberg. Photo by Bloomberg.
True Value

Twitter vs. Facebook: Wall Street Is Paying More for Less

By Martin Peers · Mar 5, 2015 7:01am PST · 2 comments
Here’s a quick quiz. Which social media network should be valued more highly: a) the one that is used by almost everyone daily or b) the one that a minority of people, other than journalists, use? If you answered A, you may be in a position to make some money trading stocks. I’m talking about the current stunning valuation gap between Facebook... Here’s a quick quiz. Which social media network should be valued more highly: a) the one that is...
IAC Chairman Barry Diller. Photo by Bloomberg.
As IAC’s Focus Narrows, Diller Era Enters Twilight
By Martin Peers · Feb 19, 2015 7:00am PST
IAC Chairman Barry Diller. Photo by Bloomberg.
True Value

As IAC’s Focus Narrows, Diller Era Enters Twilight

By Martin Peers · Feb 19, 2015 7:00am PST
Over more than two decades, Barry Diller has invested in everything from online travel to lending and search. But now, six years after spinning off most of those business into separate companies, the future of his flagship company IAC has narrowed to be almost entirely dependent on its online dating business, particularly Tinder. Given that Mr.... Over more than two decades, Barry Diller has invested in everything from online travel to lending...
Apple CEO Tim Cook this week in San Francisco. Photo by Bloomberg.
True Value

Why Tech Sector’s Debt Craze Won’t Last

By Martin Peers · Feb 12, 2015 7:01am PST
The view from the corporate treasury office in many tech companies recalls the Rime of the Ancient Mariner: Cash, cash everywhere and not a penny to spend. As big tech companies continue to leave cash overseas rather than pay taxes to bring it back, they’ve increasingly resorted to borrowing money. This trend, fueled by record-low interest... The view from the corporate treasury office in many tech companies recalls the Rime of the...
Yahoo CEO Marissa Mayer. Photo by Bloomberg.
True Value

What’s Yahoo Worth? Half a Twitter

By Martin Peers · Feb 5, 2015 7:00am PST · 1 comment
The way Yahoo tells it, spinning off its Alibaba stake into a separate company will give investors “valuation transparency” into its core business and its stake in Alibaba. But judging from Yahoo’s stock price in recent days, that clarity is still a ways off. Last week’s confirmation of the widely expected spinoff removed one of the biggest... The way Yahoo tells it, spinning off its Alibaba stake into a separate company will give...
Amazon chief Jeff Bezos with Tory Bruno from United Launch Alliance. photo by Bloomberg
True Value

Bezos’ Steady Selling Leaves Amazon Vulnerable

By Martin Peers · Jan 29, 2015 7:00am PST
In popular imagination, Amazon.com ranks alongside Google and Facebook as a tech giant able to make long-term bets by virtue of a founder who controls the company and a cash-spewing core business. In reality, however, Amazon has never spewed that much cash, and its founder has been slowly liquidating his stake. Since taking the company public in... In popular imagination, Amazon.com ranks alongside Google and Facebook as a tech giant able to...
Amazon chief Jeff Bezos; photo by Bloomberg
Why Tech Companies Should Consider Tracking Stocks
By Martin Peers · Jan 22, 2015 7:01am PST
Amazon chief Jeff Bezos; photo by Bloomberg
True Value

Why Tech Companies Should Consider Tracking Stocks

By Martin Peers · Jan 22, 2015 7:01am PST
When investing in big successful, founder-controlled companies like Google and Amazon.com, investors have to take the good with the bad—the hugely profitable core business along with the whimsical, money-losing efforts to find new opportunities. But given that stocks of both have underperformed the market in the past 12 months, it’s clear that... When investing in big successful, founder-controlled companies like Google and Amazon.com,...
Warner Bros chief Kevin Tsujihara; photo by Bloomberg
True Value

Hollywood’s Flawed Home Entertainment Numbers

By Martin Peers · Jan 6, 2015 10:00am PST · 2 comments
The final tally on how much consumers spent on home entertainment in 2014 released Tuesday showed a downtick of a couple of percentage points, which given the sharp declines in DVD sales could be seen as hopeful. But the true picture is much worse. That’s because the numbers, released by the industry-funded Digital Entertainment Group to... The final tally on how much consumers spent on home entertainment in 2014 released Tuesday showed...
True Value

The Mystery of Venture Capital Profits

By Jonathan Weber · Sep 11, 2014 7:25am PDT · 2 comments
Everyone loves a ranking, and one of the beauties of the business world is that in most situations it’s easy enough to see who is on top. Who are the biggest, most profitable, most valuable, fast-growing businesses? For public companies at least you can decide among a couple of basic yardsticks and make your own lists in just a few... Everyone loves a ranking, and one of the beauties of the business world is that in most...
Uber CEO Travis Kalanick. Photo by Bloomberg.
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For the Well-Connected, Some Venture Investing Now a ‘Safe Haven’

By Jessica E. Lessin · Sep 4, 2014 7:09am PDT · 6 comments
Venture capital investing isn’t for the faint of heart. Years of big wins are often followed by years of big losses; consistent performance is hard to come by. From March 2013 to March 2014, U.S. venture investors outperformed the S&P 500 by 40 percent, according to Cambridge Associates, which advises institutional investors. Yet over... Venture capital investing isn’t for the faint of heart. Years of big wins are often...
Robert Herz of FASB testifies on expensing of stock options in 2004. Photo by Bloomberg.
Tech Companies Sow Confusion by Refusing to Mind the GAAP
By Jonathan Weber · Aug 28, 2014 7:08am PDT · 1 comment
Robert Herz of FASB testifies on expensing of stock options in 2004. Photo by Bloomberg.
True Value

Tech Companies Sow Confusion by Refusing to Mind the GAAP

By Jonathan Weber · Aug 28, 2014 7:08am PDT · 1 comment
Did Twitter make a profit last quarter? That seems like a simple enough question, one that public companies are required to answer in very specific fashion. Yet a quick perusal of news coverage of the July 29 earnings announcement shows two drastically different answers: Twitter either had a $15 million profit, or a $145 million loss. The... Did Twitter make a profit last quarter? That seems like a simple enough question, one that...
Ebay CEO John Donahoe. Photo by Bloomberg.
True Value

PayPal’s Future Still in Play

By Jessica E. Lessin · Aug 21, 2014 7:09am PDT
Activist investor Carl Icahn’s quest to compel eBay to spin off its PayPal unit ended with a whimper in April. But the maneuvering over PayPal, a giant in the red-hot payments sector, seems to be just beginning. Ebay has been telling potential recruits for the position of PayPal CEO that it’s considering spinning off the payments... Activist investor Carl Icahn’s quest to compel eBay to spin off its PayPal unit ended with...
Sen. Elizabeth Warren, a champion of the Consumer Financial Protection Bureau. Photo by Bloomberg.
True Value

Risks Loom Large as Financial Innovation Accelerates

By Katie Benner · Aug 14, 2014 7:13am PDT · 6 comments
Travel back in time a decade and you’ll find a world awash in game-changing innovation that was supposed to make life less expensive, more efficient and better for all. Instead of apps and data analytics there were mortgage-backed securities, credit default swaps and other derivatives. There were specialty lenders. And there were massive... Travel back in time a decade and you’ll find a world awash in game-changing innovation that...
Salesforce.com CEO Marc Benioff. Photo by Bloomberg.
True Value

What’s a Subscription Software Company Worth?

By Katie Benner · Aug 7, 2014 7:40am PDT · 3 comments
If you remember Enron, Worldcom and the dot-com 1.0 preference for eyeballs over revenue, you can understand why people are wary about the unfamiliar accounting metrics used to justify big valuations for subscription software companies. Salesforce.com, Jive Software, Dropbox and Evernote don’t need profits to be worth billions, the... If you remember Enron, Worldcom and the dot-com 1.0 preference for eyeballs over revenue, you can...
The New York Stock Exchange floor. Photo by Bloomberg.
Scarcity of Shares Driving Internet Stocks Higher
By Katie Benner · Jul 31, 2014 7:21am PDT
The New York Stock Exchange floor. Photo by Bloomberg.
True Value

Scarcity of Shares Driving Internet Stocks Higher

By Katie Benner · Jul 31, 2014 7:21am PDT
With the springtime selloff behind us, tech stocks suddenly seem like the bell of the public market ball. The Nasdaq gained 24% over the past year; Facebook soared 99% and Google notched a 32% gain. Even once-moribund Twitter is coming back to life, and bankers expect the Alibaba offering to be a blockbuster. But there are some subtle... With the springtime selloff behind us, tech stocks suddenly seem like the bell of the public...
Silicon Valley Bank CEO Greg Becker. Photo by Bloomberg.
True Value

The Hidden Costs of Venture Debt

By Katie Benner · Jul 17, 2014 7:21am PDT
Biotech entrepreneurs are increasingly borrowing money rather than raising equity. So-called venture debt seems like a tempting option for all startups that need large up-front investments but will generate almost no revenue for many years.   Companies say they’re attracted to the deals because debt doesn’t dilute existing... Biotech entrepreneurs are increasingly borrowing money rather than raising equity. So-called...
Federal Reserve Chair Janet Yellen. Photo by Bloomberg.
True Value

Perfect Storm Boosting Megadeals May Be Short-Lived

By Katie Benner · Jul 10, 2014 7:35am PDT
With Apple’s $3 billion acquisition of Beats Electronics and huge telecom and cable company sales in the works, a megadeal storm has hit techland. But one technical ingredient that has fueled big deals may begin to dry up: ultra-low interest rates. We could already be seeing the effects of a gradual shift in the Federal... With Apple’s $3 billion acquisition of Beats Electronics and huge telecom and cable company...
Photo by Shutterstock.
True Value

With Secret Contracts, Employees Skirt Bans on Share Sales

By Katie Benner · Jun 26, 2014 7:54am PDT
Companies like Uber, Airbnb and Dropbox are known for keeping a tight rein on employee stock, essentially prohibiting private share sales of the type that were quite popular among pre-IPO companies just a few years ago. Some say the clampdown is unfair to employees. Others say it’s a prudent way to keep a handle on ownership and prevent... Companies like Uber, Airbnb and Dropbox are known for keeping a tight rein on employee stock,...
JD.com founder Richard Liu Qiangdong. Photo by Bloomberg.
Soaring Chinese Tech IPOs Show Big Shift in Sentiment
By Katie Benner · Jun 19, 2014 7:48am PDT
JD.com founder Richard Liu Qiangdong. Photo by Bloomberg.
True Value

Soaring Chinese Tech IPOs Show Big Shift in Sentiment

By Katie Benner · Jun 19, 2014 7:48am PDT
As the world awaits Alibaba’s public offering with a fervor not seen since the Nintendo 64, the iPhone and the birth of Christ, it’s hard to remember that just a few years ago Chinese companies were toxic. A series of scandals dogged Chinese stocks starting in 2011, when software maker Longtop Financial Technologies was caught... As the world awaits Alibaba’s public offering with a fervor not seen since the Nintendo 64,...