Oct 22, 2013 18:32 UTC

Netflix could turn troublesome euphoria into useful cash

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By Robert Cyran
Thea author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Netflix stock has quadrupled since January. Chief Executive Reed Hastings warns that momentum investors have become too euphoric. Diluting the punchbowl by issuing more equity is a better way to calm this rowdy party – and answer doubts about the online video company’s balance sheet.

Oct 22, 2013 04:07 UTC

Alibaba creative governance should come at a cost

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By John Foley

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

New York and Hong Kong differ on shareholder democracy. Alibaba, China’s biggest e-commerce company, has received approval from U.S. stock exchanges to let a partnership of senior executives nominate most of its directors. Hong Kong rebuffed the idea on principle. Investors in a future initial public offering must now decide what that principle is worth.

Oct 21, 2013 07:56 UTC

Li Ka-shing still has options after ParknShop flop

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By Una Galani

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

Li Ka-shing’s sale of ParknShop has flopped, but he still has other options. The tycoon’s holding company, Hutchison Whampoa, shelved a potential sale of the Hong Kong supermarket chain, after targeting an ambitious valuation of over $3 billion. But there are other ways to raise funds. ParknShop might be more palatable if Li can bundle it up with more attractive assets from his group.

Oct 18, 2013 18:52 UTC

Hope tweets eternal for Twitter IPO valuation

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By Robert Cyran and Richard Beales
The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

Twitter’s immature market debut leaves plenty of room for investors’ animal spirits. Early disorganization and a late focus on the top line make the microblogging service seem younger than Facebook when it went public. The social network was profitable, while Twitter is in the red – but its revenue is growing faster than at Mark Zuckerberg’s outfit.

Oct 18, 2013 16:48 UTC

Mark Zuckerberg’s new IPO religion wins disciples

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By Jeffrey Goldfarb
Thea author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Mark Zuckerberg’s new religion should attract plenty of disciples. The Facebook founder’s early contempt for the idea of an initial public offering was supposed to influence a generation of Silicon Valley entrepreneurs. The stock’s calamitous debut in May 2012 only reinforced the resistance. Zuckerberg and Facebook have come around, though – and many others are set to follow.

Oct 18, 2013 15:09 UTC

Europe’s investors miss value cues, again

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By Robert Cole

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

It is one of the oldest rules in the investment book: buy what’s cheap, sell what’s expensive. The current crop of European fund managers must have slept through that lesson.

Oct 17, 2013 18:42 UTC

BBVA makes painful withdrawal from Chinese bank

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By Fiona Maharg-Bravo
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

BBVA is learning the Chinese art of saving face. The Spanish lender has attributed its sale of a 5 percent stake in China’s CITIC Bank to new Basel capital rules. Yet while the deal will add 2.4 billion euros to BBVA’s capital, it hardly sugarcoats a 2.3 billion euro writedown on the value of its stake. Basel may have provided a graceful way to reduce an underwhelming investment.

Oct 16, 2013 21:04 UTC

Sum worth more than parts in U.S. auto parts deal

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By Robert Cyran
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

The sum is worth more than the parts – auto parts, that is. Advance Auto’s $2 billion takeover of rival General Parts International resulted in the acquirer gaining $1 billion in market cap. That’s bang in line with the net present value of promised cost savings. Nobel Prize winner Eugene Fama’s efficient markets hypothesis may be flawed, but when it comes to the nitty-gritty of corporate finance, it often seems to work just fine.

Oct 15, 2013 17:59 UTC

Corbat’s Citi takes a step backward

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By Antony Currie
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Mike Corbat’s Citigroup has taken a step backward. The mega-bank’s chief executive ends his first year in charge with third-quarter earnings below estimates and a meager 6.4 percent return on equity. Granted, markets over the summer were hardly amenable. But the breaks Citi got elsewhere make the bank’s overall performance look that much worse.

Oct 15, 2013 14:12 UTC

CEO makeover leaves Burberry with plenty to prove

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By Quentin Webb

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Burberry’s executive makeover leaves the British trench-coat maker with plenty to prove. Angela Ahrendts, chief executive of the $11 billion fashion house, is leaving next year to run Apple’s retail operation. That lopped 4.5 percent off Burberry shares on Tuesday morning.