Rides doesn’t really make any money. Uber reported reasonable results compared to expectations but losses have remained heavy which I think will continue to weigh on sentiment despite the promise of a break-even this year. Q4 19 revenues / EPS was $4.07bn / LOSS$0.64 slightly ahead of forecasts of $4.06bn / LOSS$0.68 while bookings were slightly ahead at $18.13bn and...
Qualcomm FQ1 20 – 5G story. Qualcomm reported good results as the roll-out of 5G is gathering pace but the uncertainty in China is likely to impact Qualcomm more than most. FQ1 20 revenues / EPS were $5.08bn / $0.80 compared to forecasts of $4.83bn / $0.55 but like Apple, it has been forced to widen its guidance range at...
Disney is out of the blocks in first position. Disney has handsomely beaten expectations for its Disney+ service but at the same, the costs of fighting this war immediately become clear when one looks at the bottom line. At its Q4 19 results, Disney announced that it had 26.5m subscribers at the end of the quarter which has already grown...
Google is not going to become Apple. Google reported good Q4 19 results, but its greater disclosure unwittingly revealed that hardware has again let the side down and I fear that there is worse to come. Q4 19 revenue / EPS were $46.08bn / $15.35 below revenue estimates of $46.87bn but well above EPS a $12.52. However, revenue is...
Data from cars is better than data from phones for now. When it comes to digital transportation services, I think that data that comes directly from the vehicle will be much more accurate and therefore, valuable, highlighting the opportunity that the OEMs still have provided they act in time. When it comes to transportation data, Google is currently the...
Amazon Q4 19 – Almost all cylinders Amazon reported excellent results that completely overshadowed the hundreds of millions that Amazon is burning to win India as its investments in growing revenue are paying off but there still remains a long way to go when it comes to profitability. Q4 19 revenue / net income were $87.4bn / $3.3bn ahead of...
Tesla Q4 19 – Own two feet Tesla’s results have already divided opinion, but while the valuation remains unjustifiable, I think my very long-term view that Tesla won’t survive needs a revisit. Tesla’s Q4 results demonstrated that it is becoming a proper car company and demonstrating the fact that high margins in vehicles are impossible. Q4 revenues / EPS were...
Battery life drives the earnings iPhone had a very good bounce off the lows of FQ1 19 driven by a recovery in China but a less than enthusiastic reception by the market and its valuation increase my inclination to take profits. FQ1 20 revenues / EPS were $91.82bn / $4.99 comfortably ahead of consensus at $88.41bn / $4.54. The story...
The bloodbath is not over. The bloodbath that is the micro-mobility market still has a long way to go before anyone has a hope of making any money let alone earning a positive return for investors. The latest round of consolidation involves the acquisition of Berlin-based Circ by Bird for an undisclosed sum. Given that Bird has just raised $350m...
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.
Digital Automotive – Badly needed space.
Falling investments give OEMs more space. Since the deflation of the autonomous hype balloon, investments in automotive technology have fallen which will slow the pace of innovation giving the badly struggling OEMs some breathing space. Data from Pitchbook (see here) indicates that in 2019 756 deals raised a total of $33.5bn down significantly from $58.7bn from 886 deals in 2018....