One good, one bad exemplifies how unbalanced risk is in big tech. Amazon – Permanent pandemic Amazon reported excellent results as the shift towards online shopping that was accelerated due to the pandemic appears to have changed people’s habits. Q1 2021 revenues / EPS were $102.5bn / $15.79 comfortably ahead of forecasts of $104.6bn / $9.61. The core retail e-commerce...
Both Apple and Facebook smash expectations. Apple FQ2 2021 – the last of the stay at home Apple reported FQ2 2021 results that blasted through estimates as the work and learn from home trend continued to underpin demand for its productivity products which was also supported by a solid performance from the iPhone. FQ2 2021 revenues / EPS were $89.6bn...
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...
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...
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.
Darktrace– Cheaper is cheerful.
Darktrace makes the right choice. Instead of pulling the IPO, Darktrace dealt with the issues by cutting its valuation significantly and was rewarded with a first-day bounce that will go some way towards restoring the image of the LSE which was badly tarnished by the awful launch of Deliveroo. Darktrace is a cybersecurity company that uses pattern recognition (AI) to...