Lyft sells its differentiation. Lyft may have sold a struggling asset but in a world of robotaxis, this asset was the one chance Lyft had at winning any differentiation highlighting just what a brutal commodity the robotaxi industry is going to be. This is where I think that both Elon Musk and Ark Invest have made a mistake as both...
Mapbox claims a navigation niche. Hot on the heels of announcing a new CEO and a new strategy (see here), Mapbox has announced a navigation product for automotive which is nicely timed with the possibility of a public listing via SPAC. The new product is called Mapbox Dash which is a navigation system designed for the infotainment system that is...
The US Administration launches its first EV. Despite three years of saying there is nowhere to run (see here), Huawei is seeking refuge in the automotive industry with an EV that is almost certainly a result of the actions by the USA. This week it’s the Shanghai Auto Show and as my colleague Michael Dunne sagely points out (see here),...
Netflix – Stuck in the doldrums Netflix has paid the price for its pandemic bump with a disappointing set of results that will keep the shares in the doldrums (like Amazon and others) until the valuation catches up. Q1 2021 subscribers / revenues / EPS were 208m / $7.2bn / $3.75 which was a miss on subscribers where the company...
An IPO of Arm beckons. The risk to NVIDIA’s acquisition of Arm from Softbank continues to increase as the problems with its China unit seem to be getting worse rather than better and now the UK government is investigating on the grounds of national security. The dispute started around 12 months ago when Arm China’s board voted 7-1 to remove...
Go away and come back another day. While I think that EV’s will take over the entire vehicle industry, the amount of capital chasing this sector has reached absurd levels and the signs of a sharp and devastatingly painful correction are everywhere. Electric vehicles make complete sense because once they begin to scale and the infrastructure is in place, RFM...
The Biden administration makes its first clear move on China The Biden administration has made its first move against China in what looks like a warning shot rather than any real attempt to hobble a part of China’s technology industry. The USA has placed Tianjin Phytium IT, Sunway Microelectronics, Shanghai High-Performance IC Design Center and four regional facilities of the...
IPO now may not be such a good idea. The spectre of Autonomy hangs over the Darktrace IPO partly due to its relationship with ex-Autonomy executives but also because it has made a mess of its communications. The last thing the LSE needs is another failed IPO as many leading prospective UK technology companies are already questioning the wisdom of...
An opportunistic cash grab. Grab is going public in one of the biggest SPAC transactions to date and while its valuation is not at the Tesla / electric vehicle-level of unreality, it does not need the cash and is still at least 2x overvalued based on its fundamentals. This looks very much like a transaction aimed at capitalising on the...
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 & Microsoft– Different shares
Good results but different reactions imply that valuation in big-cap tech is starting to matter again. Alphabet Q1 2021 – Approaching the range. Google reported good Q1 2021 results as it is still catching up from the dip that it suffered in H1 2020 as a result of the pandemic. Q1 2021 Revenues Ex-TAC / EPS were $45.6bn / $26.29...