Zuckerberg bets his company on the Metaverse. Mark Zuckerberg is betting his company on the Metaverse, and while it is making the right noises, it is clear that this was his decision and his decision alone. This highlights one of the key risks of companies where founders have control through super-voting share distributions because if this turns out to be...
Apple FQ4 2021 – Not so chipper. Apple reported disappointing results as a result of the ongoing supply chain difficulties and also warned that the problems were getting worse going into Q4 2021. Revenues / EPS were $83.4bn / $1.24 behind forecasts of $84.7bn / $1.24 and it warned that the supply chain issues would cause $6bn of demand to...
Some semis are value stocks. Samsung fleshed out its preliminary report by reporting another very good quarter supported by strong chip pricing thanks to the current shortage. Despite signs that the cycle may be peaking, Samsung has already sold off quite some distance and is beginning to look attractive again on valuation. Q3 2021 revenues / net income were KRW74.0tn...
Alphabet Q3 2021 – Very little Apple effect. Alphabet reported excellent results but weakness at YouTube, Google Cloud, and a muted share price response continue to imply that the shares are fully valued leaving me pretty unexcited. Q3 2021 revenues ex-TAC / EPS were $53.6bn / $27.99 compared to estimates of $52.6bn / $23.50 as most of the business was...
Facebook puts its money where its mouth is. Users are still not deserting Facebook despite all of the bad press but the real story here is that Facebook is going to invest at least $10bn a year in building the Metaverse. Facebook reported reasonable results but there are significant headwinds that will take some time to deal with which will...
Intel Q3 2021 – The price of progress. Intel reported excellent Q3 2021 results and reasonable 2021 guidance, but it turns out that investments have to be paid for before returns materialise, and it was this realisation that led the market lower. Q3 2021 revenues / EPS were $19.91bn / $1.67 well ahead of consensus at $18.24bn / $1.08...
Radio Free Mobile is taking a short break and will return on Monday 25th October.
Apple tries to get its nose under the OEM’s tent. Apple is working on ways to enable users to access vehicle functions such as seats or climate control from within CarPlay in a move that would herald the beginning of the end for the digital aspirations of the OEMs. Bloomberg has unearthed a new project by Apple called IronHeart that...
This is not about money. I think that Google is hoping to use the parts of the previous ruling that were favourable to Apple in order to set a legal precedent that it hopes will enable it to lengthen the time it can maintain a dominant position in-app distribution. Google’s countersuit against Epic Games is for breach of contract after...
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.
Rivian – The contortionist pt. III.
The public market will take no prisoners. Rivian’s valuation at IPO of $60bn (post-money) is lower than the $80bn mooted but it is still way above anything that a reasonable investor would consider fair, meaning that this green management team has to execute flawlessly to avoid ruthless punishment. Rivian is aiming to raise $8.4bn at around $62 per share (top...