Withdrawal of guidance unsettles the market. Apple reported good results but withdrew its guidance offering instead an olive branch comprised of a dividend increase and share buyback. FQ2 2020 revenues / EPS were $58.3bn / $2.56 ahead of consensus of $54.25bn / $2.26. Apple has real exposure to China and saw a lot of fluctuation in its business during...
Facebook surprises more than Microsoft. Microsoft FQ3 2020 – The obvious beat Microsoft ticked all the right boxes in its FQ3 2020 earnings report with the exception that it saw weakness from one-time software sales which are typically purchased by small businesses which is where the virus hammer is falling the hardest. FQ3 2020 revenues / EPS were $35.0bn /...
Google and Samsung have no idea what the future holds. Google battens down the hatches Alphabet reported good Q1 2020 results but while it noted that there was no real impact until late March, it admitted that it has no real idea how bad things are going to get which has led to it taking a very conservative position on...
NXP hints at mobile, industrial and automotive outlook. NXP reported reasonable results but guided as weakly as expected showing both the well-documented weakness in automotive but also another hint of a slip in demand for mobile devices. Q1 2020 revenues / EBIT were $2.0bn / $502m compared to already adjusted estimates of $2.1bn / $532m. During the backend of the...
Magic Leap will go down as a cautionary tale. Magic Leap’s failure can predominantly be traced back to a single problem which was the inability to make its technology fit into a small enough package in order to create a viable product. The company’s secrecy and it’s very short-sighted hyping of expectations (as well as skating very close to the...
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...
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...
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.
Amazon Q1 2020 – Pandemic blues.
Lack of a vaccine will hurt for some time. Amazon reported good results but disappointed shareholder by committing all of its profits in Q2 2020 to COVID-19 related spending sending a warning that costs are likely to remain higher until a vaccine is found. Q2 2020 revenues / EBIT were $75.4bn / $4.0bn ahead of revenue expectations of $72.6bn but...