Arab Press

بالشعب و للشعب
Tuesday, Apr 28, 2026

Tech companies are seizing the market moment

Tech companies are seizing the market moment

The biggest tech companies strengthened their hold on the global economy during the pandemic. Now, the industry is leveraging a moment of market euphoria to gear up for what comes next.

What's happening: Airbnb and DoorDash could raise billions of dollars through initial public offerings, while Salesforce's purchase of messaging platform Slack (WORK) for nearly $28 billion is a bet on the future of work.

This week has brought a flurry of tech deal activity as investment bankers help companies prepare for life after 2020.

The arrival of safe and effective vaccines has given investors a jolt of confidence, making it easier for companies to make their Wall Street debuts with bold promises about future growth.

See here: Airbnb disclosed Tuesday that it plans to sell shares in a price range of $44 to $50. At the the upper end of that range, Airbnb would be valued at just over $30 billion — not far off its private valuation before the pandemic decimated demand for travel bookings.

If the offering goes ahead at $47 per share, the deal could raise up to $2.5 billion. It's a notable figure for a company that's come through an immensely challenging year, slashing costs and relying more on longer-term stays closer to home.

Not alone: Delivery app DoorDash said earlier this week that its IPO could raise $2.54 billion if it prices shares at $80, the midpoint of its expected range.

Meanwhile, other tech companies are increasing their exposure to cloud computing and services that support remote work, which have been bright spots during the pandemic.

Salesforce (CRM), which sells cloud-based customer management software and other enterprise applications, said its acquisition of Slack, announced Tuesday, will help to bolster its business offerings at a crucial time.

"Together, Salesforce and Slack will shape the future of enterprise software and transform the way everyone works in the all-digital, work-from-anywhere world," Salesforce CEO Marc Benioff said.

It's not just a US phenomenon. After selling nearly $100 billion in assets, Japanese conglomerate SoftBank (SFTBF) is back in buying mode. Sinch, a Swedish cloud and telecommunications company, said this week that SoftBank had acquired a 10% stake in the firm, which is the best performing stock in Europe this year.

And Chinese smartphone maker Xiaomi said Wednesday that it's raising more than $3 billion for strategic investments and expansion in key markets.
Step back: In a recent report, Bain & Company noted that tech companies' share prices have been "resilient" during the recent downturn, and many are sitting on piles of cash. That creates the conditions for a spending spree.

"Those with the means will use this opportunity to add new capabilities and reposition their organizations for the post-pandemic world," partners Adam Haller and Chris Johnson said.

Three big developments investors should watch


Global investors are watching three big events this December: the Covid-19 vaccine rollout, stimulus efforts and Brexit trade talks. On all fronts, there have been important developments.

* On vaccines: The United Kingdom has become the first Western nation to approve a Covid-19 vaccine, a landmark moment in the coronavirus pandemic that paves the way for the first doses to be rolled out across the country next week. "Help is on the way," Health Secretary Matt Hancock announced Wednesday morning, after UK regulators granted emergency authorization for a vaccine made by US pharma giant Pfizer and its German partner BioNTech.

* On stimulus: President-elect Joe Biden has said his top priority is getting a stimulus package through Congress, even before he takes office. On Tuesday, a bipartisan group of lawmakers unveiled a package worth roughly $900 billion aimed at jumpstarting stalled talks. While the plan doesn't have support from Senate Majority Leader Mitch McConnell, pressure to act is growing. McConnell indicated Tuesday that Republicans may try to combine stimulus spending with legislation to keep the government funded and prevent a shutdown. That would require buy-in from both parties, however.

* On Brexit: Reports on Tuesday indicated that negotiations on a trade deal between the United Kingdom and the European Union were nearing a positive conclusion. That sent the British pound above $1.34, its highest level in more than two years. But an EU diplomat told CNN Wednesday that differences remain and there's still no guarantee of agreement.

Stocks are taking a breather on Wednesday after a strong start to December. But additional progress in any of these areas could shift markets.

Nasdaq's diversity push for Corporate America


Nasdaq wants to give companies that list on its high-profile exchange an ultimatum: Diversify your boards, or get out.

Details, details: The exchange is proposing a rule that would require companies to have at least two "diverse" directors, including one woman and one member of an underrepresented minority group, my CNN Business colleague Chris Isidore reports. Smaller companies and foreign companies on the exchange could comply with two directors who are women.

A company could have its shares delisted from the exchange if it does not comply.

Big picture: Nasdaq joins a growing group of voices pushing for greater diversity in boardrooms. In September, California Gov. Gavin Newsom signed a law that would require at least one minority member on the boards of all publicly-traded companies based in the state. Goldman Sachs has said it will not take a company public unless it has at least one diverse board member.

Many large public companies already comply with the rule's minimum requirements. A spokesperson for Nasdaq said it believes that at least 85% of its 3,249 listed companies have either one woman or one underrepresented minority on their boards.

What's next: Should the rule get a green light from the Securities and Exchange Commission, Nasdaq-listed firms would need to have at least one diverse director within two years, and two within four to five years, depending on the size of the company.

Up next


US stock futures are slightly lower after the S&P 500 and Nasdaq Composite both logged fresh records Tuesday. Markets in Europe dipped in early trading, while stocks in Asia were mixed. Investors are selling benchmark US Treasuries, sending yields higher.

CrowdStrike (CRWD) and Snowflake report results after US markets close.

Also today: The ADP private employment report for November posts at 8:15 a.m. ET. It's an important data point ahead of Friday's official US jobs report.
Coming tomorrow: Dollar General (DG) and Kroger (KR) post earnings.

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
News Roundup
Strategic Saudi-Bahrain Causeway Closed Amid Security Concerns as Trump Deadline Approaches
Saudi Arabia Keeps Red Sea Oil Exports Flowing Despite Regional Tensions
Pipeline Attack Cuts Significant Share of Saudi Arabia’s Oil Export Capacity
Saudi Business Leader Abudawood Appointed Chairman of Merit Incentives Group
TotalEnergies Confirms Damage at Saudi Refinery Following Security Incident
Saudi Arabia Launches Early Construction Phase for King Salman Stadium Project
Saudi Shift Away from Longstanding Dollar Oil Framework Gains Attention Amid Iran Conflict
Türkiye and Saudi Arabia Resolve Long-Running Transit Visa Dispute
Saudi Oil Capacity and Pipeline Flows Reduced as Supply Risks Intensify
TotalEnergies Reports Damage to Saudi SATORP Refinery Following Security Incidents
Gulf States Assess Prospects of U.S.-Iran Truce as Regional Stability Efforts Intensify
South Korea Resumes Honey Exports to Saudi Arabia Following Sanitary Approval
Saudi Arabia Carries Out Sentences in Eastern Province Following Security Convictions
Saudi Sovereign Wealth Fund Backs King Street’s Regional Credit Strategy
Saudi Arabia Secures World Cup Return as Egypt Celebrates Landmark Qualification
Iran and Saudi Arabia Intensify Diplomatic Engagement Amid Regional Tensions
Russia and Saudi Arabia Open Visa-Free Travel Corridor for Citizens
Saudi Oil Output Capacity Reduced by 600,000 Barrels Per Day Amid Regional Conflict
Saudi Arabia Suspends Operations at Select Energy Sites as Precautionary Measure
Saudi Arabia Halts Operations at Multiple Energy Facilities Amid Heightened Tensions
Global Markets Jolt as Iran Signals Ceasefire Breakdown and Rising Regional Tensions
King Street Aligns with Saudi Sovereign Wealth Fund to Expand Alternative Investments in Middle East
Attack on Saudi Arabia’s Jubail Petrochemical Hub Raises Global Supply Concerns
Debate Emerges Over Saudi Strategic Decisions as Gulf Cooperation Council Dynamics Come Into Focus
Saudi Arabia Expands Full Workforce Localisation to 69 Professions in Major Labour Reform
Emerging Alliance of Pakistan, Turkey, Egypt and Saudi Arabia Signals New Regional Power Dynamic Amid Iran Conflict
Iran Linked to Strikes Across Gulf States Following Refinery Attack Escalation
Saudi Arabia Voices Concern Over Fragile US–Iran Ceasefire Stability
Starmer Warns Sustained Effort Needed to Ensure US–Iran Ceasefire Holds
Saudi Arabia’s Key East-West Oil Pipeline Targeted Following Ceasefire Announcement
Iran Targets Saudi Arabia’s East-West Oil Pipeline in Escalating Regional Tensions
Trump Warns of Civilizational Stakes as Iran Halts Negotiations
Saudi Companies Expand Remote Work Measures Ahead of Iran-Related Security Concerns
Iran Warns of Strikes on Saudi Energy Infrastructure if US Targets Its Facilities
Iran Urges Civilians to Form Human Shields Around Nuclear Sites as Diplomatic Deadline Approaches
Saudi Arabia Raises Oil Prices to Record Premiums Amid Supply Pressures Linked to Iran Conflict
Key Saudi-Bahrain Causeway Closed Amid Heightened Security Concerns Linked to Iran
Formula One Calendar Gap Explained as Fans Await Next Grand Prix
Growing Strain on the Petrodollar System Comes Into Focus Amid Iran Conflict
Reported Strike on Saudi Arabia’s Jubail Complex Raises Global Energy Supply Concerns
FedEx Introduces New Digital Tool to Streamline Imports into Saudi Arabia
Iran Claims Strike on Saudi Arabia’s Jubail Petrochemical Complex Amid Rising Regional Tensions
Taiwan to Source Oil Shipments from Saudi Arabia’s Red Sea Ports
Saudi Arabia Evacuates Riyadh Financial District as Precaution Amid Regional Tensions
Saudi Arabia Balances Ambitious Economic Vision Amid Regional Tensions and Financial Pressures
Budget Saudi Arabia Reports Strong Full-Year 2025 Financial Performance
Saudi Arabia Expands Investment in Capcom With Stake Reaching Six Percent
Saudi Arabia Assesses Significant Economic Impact From Regional Conflict Involving Iran
US Beef Secures Expanded Market Access in Saudi Arabia
×