Semis should fare the best this week. Most of the big tech names will report their results over the next four days and while I expect most to have had a good Q4, China’s Zero Covid policy may well have continued to constrain the economy meaning another tough quarter for Chinese companies. Alphabet (Google) reports on Tuesday with Meta, Qualcomm,...
Reality and interest rates trigger a rout. While the current price correction is likely to mean the end of the road for many of the EV upstarts and the supply chain, there is a baby or two that is being thrown out with the bathwater. Ever since most of the world decided it would commit to being carbon-free by a...
Apple’s scale helps it to get the supply it needs. Apple reported good results as its scale and its excellence in supply chain management ensured that it was able to mitigate the impact of shortages and meet most of the strong demand that it had. FQ1 22 revenues / EPS were $124.0bn / $2.10 comfortably exceeding expectations of $118.4bn /...
Intel Q4 21 – Hard place. Intel reported reasonable results but pressure on gross margins revealed just how hard Intel is finding life at the moment as in a shortage, margins should be going up not down. Q4 21 revenues / Adj-EPS were $19.5bn / $1.09 compared to expectations of $18.4bn / $0.79. The cloud was the main driver of...
Microsoft FQ2 2022 – skittish investors. Microsoft’s results demonstrated just how edgy the market is with the numbers causing the shares to fall 5% followed by reassuring comments on the call which cause them to bounce back to where they started. FQ2 2022 revenues / EPS were $51.7bn (up 20% YoY) / $2.48 compared to estimates at $50.9bn / $2.32....
Russia’s excuses are exactly the same as China’s Russia is considering following China (see here) and India (see here) down the road of banning cryptocurrencies using the excuse of sound investments and crime but, as is becoming commonplace, this is really about protecting the state’s control of money. Elvira Nabiullina is the governor of the Russian central bank, a long-standing...
Netflix & Peloton pay the price for nose-bleed multiples Netflix Q4 21 – Virtual to reality As the world’s virtual reality of being stuck at home begins to end, people are less reliant on Netflix which combined with rampant inflation has made this luxury one that is the first to be cut. Netflix reported good Q4 2021 results with revenues...
China strikes another blow benefitting Team USA. It looks like further draconian measures are coming which will cause the largest source of capital for technology start-ups to dry up in yet another move that will hinder China’s efforts to become both self-sufficient in technology as well as a global technology powerhouse. Very much like its move against cryptocurrencies and (by...
Microsoft has a 2nd shot at the consumer ecosystem. Microsoft’s acquisition of Activision is a sure sign that the gold rush for the Metaverse is now in full swing which gives Microsoft another shot at winning the consumer digital ecosystem. Microsoft is paying $68.7bn (net of $6.37bn net cash on Activision’s balance sheet) to acquire Activision and is paying for...
Richard is founder, owner of research company, Radio Free Mobile. He has 16 years of experience working in sell side equity research. During his 11 year tenure at Nomura Securities, he focused on the equity coverage of the Global Technology sector.
Alphabet Q4 21 – Plain sailing.
Alphabet on track for a good 2022 Alphabet reported very solid results as seasonality augmented the secular shift to digital advertising and the potential headwinds caused by Apple privacy issues and economic disruptions caused by the latest pandemic variant had little if no impact. Q4 21 revenues / EPS were $75.3bn (up 32% YoY) / $30.69 comfortably ahead of forecasts...