2014 proved to be the year of initial public offerings (IPOs). In America alone, 275 companies issued common class stock, the most since 2000 (when over 400 companies engaged in IPOs). Led by Chinese E-Commerce giant Alibaba (BABA), U.S. IPOs in 2014 raised over $85 billion in capital, an increase of more than 40% Y/Y compared to 2013. Alibaba alone raised a record-breaking $22 billion, besting both Facebook’s (FB) 2012 IPO ($16 billion) and Visa’s (V) 2008 IPO ($17.8 billion).
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Finishing What Napster Started
After finalizing a deal to raise $400 million, the insanely popular music streaming service, Spotify, now sits among the elite private ranks of Uber, Snapchat, Airbnb, and Palantir. The newly announced private investment round, led by prestigious Goldman Sachs (GS), indicates that high profile Middle Eastern investors, in addition to traditional American VC firms, want in on Spotify's "Napster-like" business proceedings.
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Ain't Nuthin' But A Beats Thang
Apple’s (AAPL) 2014 decision to purchase Beats Electronics for roughly $3 billion sparked much debate as to whether the tech magnate had overpaid for Dr. Dre’s headphone conglomerate. The Beats acquisition was by far the largest in Apple’s recent history and signaled the emergence of a new era under CEO Tim Cook (after the 2011 passing of founder and CEO Steve Jobs). Many critics, and shareholders alike, argued that Apple overpaid for Beats Electronics, which is arguably true when solely reviewing public information.
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When Bubbles Don't Burst
On March 2, 2015 the Nasdaq Composite Index, more commonly referred to as the NASDAQ, closed above 5,000 points for the first time in fifteen years. As this occurred, Wall Street trading floors swelled with the collective anxiety of investors who had observed the same milestone during the Dot-Com era (in March 2000). Only two days after the NASDAQ eclipsed 5,000 on March 9th, the tech-oriented index began its dramatic collapse.
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Google Continues Its Microsoft Beat Down
Surprise, Google (GOOGL) is yet again redefining an established tech industry: this time it’s the PC market. Glassdoor's recently rated "top company" has announced its newest product: the Google Chromebit, which transforms all modern televisions and monitors into Chromebook computers. And the best part about Chromebit is... it's affordable!
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More Disruptive Than Apple
Modern consumer tech is entirely devoted to developing products that are smaller, thinner, and faster. For example, Millions of people line up every year to get the newest iPhone, which is often a slimmer "upgraded" version of the prior model. As consumer electronics continue this trend, tech manufacturers are faced with a puzzling reality: they must grow sales and heighten product differentiation; the only problem is corporations tend to struggle with innovation.
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Has Amazon Lost Its Swagger?
Amazon (AMZN) was once considered the top online retailer; however, since Alibaba's (BABA) recording breaking IPO, Amazon has been overshadowed by the Chinese e-commerce giant. With naturally higher profit margins, revenue growth, and earnings growth, it’s not hard to see why Alibaba is suddenly a Wall Street darling, and why Amazon has been neglected.
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