Arkady Volozh, the tech entrepreneur behind Yandex—the Russian equivalent to search engines like Google and Yahoo—has seen the value of his stake in Russia’s top tech giant fall by over 60% since the beginning of the invasion.
For years, Yandex meant more to Russia than its dollar value. Popular with global investors and Russian users alike, Yandex gained a 60% share in Russia’s search engine market–a signal that its tech entrepreneurs could, at least sometimes, compete against its U.S. rivals. It also had a rapidly growing Uber-like ride hailing business.
Sebastian Patulea, vice president of equity research at Jefferies in London, confirms that there is nothing in Yandex’s financials to warrant the sell-off and that last week’s rapid decline, not surprisingly, comes on the back of new “geopolitical risk” and the larger “indirect effects” of punitive sanctions against Russia. Still the future is quite uncertain.
For Ildar Davletshin, senior research analyst from Wood & Co, there are four major issues for Yandex: The impact of Russia’s collapsing local economy on the core digital advertising business and ride-hailing; restrictions on supply of high-tech equipment, including chips; the falling value of the ruble and a likely shortage of capital to fund its growth projects like self-driving cars and cloud technology.
Then there are concerns about the Kremlin’s influence on Yandex. In 2019, Yandex agreed to a restructuring that gave a “golden share” to a newly formed Public Interest Foundation built to “defend the country’s interests,” the
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Google halts all advertising in RussiaThe decision covers all of Google's ad surfaces in Russia, including Google display advertising, YouTube and search, the company said
Read more »
Google suspends all advertising in RussiaGoogle has suspended all online advertising in Russia, the tech giant announced on Thursday night.Driving the news: The ban covers search, YouTube and outside publishing partners and builds on Google's move on Saturday to block Russian state media channels from selling ads the invasion of Ukraine.Stay on top of the latest market trends and economic insights with Axios Markets. Subscribe for freeThe Wall Street Journal reported earlier on Thursday that the Russian communications watchdog Roskomna
Read more »
Google pauses all ad sales in Russia ‘in light of the extraordinary circumstances’Online advertising has become part of the information war
Read more »
LVMH, Hermès, Swatch Alter Business With RussiaLVMH and Hermès both said they would be closing stores in Russia and Swatch has suspended its exports, all in response to the invasion of Ukraine.
Read more »
Phoenix Mercury's Brittney Griner jailed in Russia after vapes found in luggage: reportsPhoenix Mercury player and WNBA All-Star Brittney Griner has been jailed in Russia after vape cartridges were found in her luggage at a Moscow airport, according to multiple reports.
Read more »
WNBA's Brittney Griner reportedly detained in Russia after officials found hashish oil in luggageLike many WNBA players, Griner, 31, has long played overseas in the winter months, most recently in Russia.
Read more »