London Daily

Focus on the big picture.
Saturday, Jun 27, 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

0:00
0:00
Close
London Ambulance Service Sees Record Emergency Demand as Heatwave Intensifies
British Chambers of Commerce Warns of Prolonged Weak Investment Climate Through 2027
Bank of England Holds Interest Rates as Inflation Risks Persist
UK Construction Sector Faces One Percent Contraction Amid Cost and Investment Pressures
Former DUP Leader Sir Jeffrey Donaldson Convicted of Sexual Offences
Church of England Appoints Dr Linsay Cunningham to Lead Faith and Public Life Division
UK Armed Forces Day Marked Nationwide With Events From Aberdeen to the Scilly Isles
Rising Tensions in Edinburgh Prompt Joint Warning From Scottish Local Government Leaders
UK Construction Sector Forecast to Contract One Percent in 2026 on Cost Pressures
UK Parliament Backs 87 Percent Emissions Cut as Government Deepens Electrification Drive
British Chambers of Commerce Forecast Weak UK Growth as Investment and Demand Slow
Bank of England Holds Interest Rates at 3.75 Percent Amid Energy and Inflation Uncertainty
London Ambulance Service Reports Record Surge in Life-Threatening Emergency Calls During Heatwave
UK Parliament Approves Legally Binding 87 Percent Emissions Cut Target by 2040
United Kingdom Records Third Consecutive Day of Record June Heat as Europe Faces Worsening Heatwave
Robert Jenrick Defends £5 Million Donation to Nigel Farage Amid Political Scrutiny
Plymouth Museum The Box Wins 2026 Art Fund Museum of the Year Award
UK Government Faces Backlash Over Plans to Use Former Military Sites for Asylum Accommodation
Labour Party Faces Pressure Over Cabinet Stability as Senior Figures Clash on Policy Direction
Heathrow Airport Forecasts Passenger Decline in 2026 as Costs and Climate Disruption Mount
UK Energy Regulator Approves Expansion of Long-Duration Storage to Boost Power System Resilience
Crown Estate Reports Third Consecutive Year of £1 Billion Profit as Debate Over Royal Finances Intensifies
Teenager Charged With Murder in Wales Following Death of 14-Year-Old Boy
Nottingham University Hospitals Maternity Failures Trigger Calls for Public Inquiry Into Patient Safety
EasyJet Rejects £4.9 Billion Takeover Offer From Castlelake but Keeps Door Open for Further Talks
Record Heatwave Triggers UK Transport and Infrastructure Strain as Heathrow Revises Passenger Forecast Downward
Ofgem Approves Sixteen Long-Duration Energy Storage Projects to Strengthen UK Grid Stability
Labour Government Faces Internal Tensions Over Cabinet Decisions and Net Zero Policy Direction
British Food and Drink Exports Fall to Decade Low Amid Trade Friction and US Tariffs
Great Britain Grid Operator Spends £10 Million to Stabilize Electricity Supply During Heatwave Demand Surge
UK Parliament Committee Calls for Urgent National Adaptation Strategy as Extreme Heat Strains Public Infrastructure
Record-Breaking Heatwave Pushes England’s National Health Service to Critical Incident Status as Hospitals Struggle With Surge in Emergencies
UK Government Launches Review of Voluntary National Insurance Contributions System
UK Planning Inspectorate Reports Key Infrastructure and Planning Milestones in Annual Review
UK Government Reviews Travel Expense Reimbursement Rates for Employers and Employees
Civil Nuclear Constabulary Launches National Digital Memorial for Officers Killed in Service
UK and US Expand Collaboration on Nuclear Fusion Research and Workforce Exchange
Environment Agency Secures £275,000 Enforcement Deal with Anglian Water Over Permit Breaches
Independent Inspector Flags Ongoing Failures in UK Home Office Border Case Management
UK Government Considers Zero VAT Rate on Land for Social Housing Development
Bank of England Reports Sharp Drop in Emissions and Warns on Climate-Driven Financial Risk
Consumer Confidence in the UK Falls at Fastest Quarterly Rate Since 2022
UK Borrowing Costs Rise Sharply on Gilt Markets Amid Fiscal and Political Concerns
UK Government Plans Legislation to Bring British Steel into Public Ownership
UK Government Secures £210 Million Nuclear Fuel Deal to Support Ukraine Energy Security
London Ambulance Service Reports Record Emergency Call Volume Amid Severe Heatwave
United Kingdom Faces Record June Heatwave as Temperatures Hit 36.7°C in Somerset
UK Financial Services Reform Debate Intensifies Over Ministerial Regulatory Powers
UK Energy Price Cap Rise Expected to Keep Inflation Above Target Through 2026
UK Biohacking and AI Wellness Trends Drive Surge in Personal Health Monitoring
×