Seagate fares well while Magic Leap all but closes. Magic Leap – Shattered dreams Magic Leap has all but shut up shop and given that its IP has already been pledged to JP Morgan as collateral for its debts (see here), it will remain expensive to acquire even if the acquirer pays $0 for the shares. Magic Leap is using...
Snap is the biggest surprise of the night. Netflix Q1 2020 Netflix added far more subscribers in Asia and Europe than expected but this did not translate into extra revenue as these subscribers were predominantly in lower-priced countries where the strength of the dollar has impacted net revenue to Netflix. Q1 2020 revenues / EPS were $5.77bn / $1.57 disappointing...
The cloud theme likely to stay despite a return to work. Alibaba is doubling its investments in the cloud following the pandemic in China in a clear sign that the acceleration of cloud usage is a trend that is here to stay. The shift towards cloud computing has been a steady secular trend over the last several years but the...
The first view of the lockdown starts this week. The most important reporting season for many years is about to begin in earnest giving the first concrete idea of how the current pandemic and the economic knock-on effect is going to affect the technology sector. Listed below are some of the key companies reporting this week and what I expect...
Too many moving pieces for a clear picture. TSMC reported excellent results as smartphone orders remained resilient and a boost in demand for servers, PCs and office equipment pushed the numbers ahead of expectations. However, the company was cautious on its guidance meaning that there are other factors at play in the heavily disrupted supply chain that has meant that...
Google issues a closet profit warning. Google has effectively warned the market that 2020 is going to be rough by freezing hiring in another sign that its customers, the advertisers, have slashed spending meaning lower revenues and profits for Google. Sundar Pichai, CEO emailed Google employees (and the world (see here)) saying that the time has come to “significantly slow...
Netflix needs subscribers. Netflix is being hailed as one of the lockdown winners and while usage of the service has probably jumped 30% or more in the last quarter, Netflix needs to add subscribers to increase revenues and justify its recent rally. RFM research has found that most of the digital ecosystem will not benefit from the pandemic induced lockdown...
SoftBank will emerge better and stronger. It is the realisation it overpaid for many of its portfolio investments that is causing SoftBank so much difficulty at the moment which I think will lead to a complete re-writing of its investment process for the better. SoftBank has revealed that it expects to write down some assets in its Vision Fund by...
Radio Free Mobile is running a series of webinars for its subscription clients to present what it sees as the issues an outcomes resulting from the COVID-19 pandemic. Richard founded RFM after spending 20 years in investment banking as a technology lead analyst. Richard also gained a PhD in molecular immunology at University College London providing the foundation for a...
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.
Intel Q1 2020 – The rampart
Intel is well exposed and looks defensive. Intel reported good results and guidance but the withdrawal of guidance for the rest of the year spooked the market despite Intel’s very defensive looking valuation. Intel reported revenues / EPS of $19.8bn / $1.31 ahead of estimates of $18.8bn / $1.23 and guided reasonably well for the Q2 2020. Q2 2020 revenues...