Eq: Tech

(Seattle)

Amazon has been hit hard lately. The company’s surprise earnings caught the market off guard, which led to a big tumble in the shares, with the stock dropping over 10%. However, that presents a good buying opportunity, says Barron’s. The market was nervous because of the slowdown in revenue growth, but according to one analyst “We believe revenue growth is becoming a less relevant metric for Amazon given the outsize growth of the company’s cloud and advertising businesses”.


FINSUM: Amazon is still a fast growing business, but it is becoming more mature, which means expanding margins are going to be a key metric to watch. That is an area the company is excelling in.

(Seattle)

The hype over Amazon’s pending second headquarters is making quite a splash, and not just at the local level or in the media. Several investment funds, large and small, are or will deploy significant capital in trying to chase the real estate returns that seem likely to accompany the new location. Amazon says the new headquarters will employ 50,000 people over the next two decades, and existing tech-focused cities have seen huge gains in real estate on the back of the highly paid work force. Accordingly, several funds are being established to quickly buy real estate in the city that wins the new headquarters.


FINSUM: Buying real estate in the winning city seems like a very good long-term bet. We wonder how locals in these “finalist” cities are feeling given the upside and downside of Amazon coming.

(San Francisco)

In what would likely come as the biggest IPO in recent memory, Uber says it is planning for a potential IPO in 2019. Parties close to Uber say that its bankers delivered valuation proposals for an IPO in the range of $120 bn. That is an eye-opening figure because it is almost double the company’s valuation from its most recent funding round 2 months ago. There are no guarantees the company will go public next year, but its CEO has said it is aiming for a public debut in the second half of 2019.


FINSUM: We do not think that valuation is out of the question given how much investor anticipation there might be for this IPO. The IPO market has been red-hot, so nothing seems out of reach.

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