If you can’t beat them, join them. Google’s move into banking with Citigroup makes complete sense because, as Facebook found, the vested interests in the banking sector will do whatever it takes to prevent disruption. The banking system as it exists to today is not fit for purpose. Despite massive consumer digitisation, it is still slow, overly bureaucratic, expensive and...
Deadlines can easily be pushed out. To get augmented reality to the point at which Apple can ship a product that it is ready for its discerning user base may take far longer than its own PowerPoint presentations suggest. The Information (see here) has spoken with sources who have disclosed that Apple’s roadmap for VR and AR is to launch...
This asset is virtually worthless. Disclosures in Uber’s Q3 19 10-Q SEC filing reveal that the situation at its autonomous driving unit is worse than even I had anticipated further re-enforcing my view that this asset is virtually worthless (see here). This will not please Honda or Denso who have between them invested $667m in this Uber’s autonomous driving division...
Yet another avoidable blunder. In what is becoming a recurring habit, reviewers have found a serious problem with the Google Flagship device that further underlines my view that Google should not be making hardware. This time (see here) the problem is structural integrity where the infamous bend test (which most phones survive easily) resulted in 4 huge cracks in the...
Uber is not quite out of the woods yet. I have been very negative on Uber since long before the IPO, but I think that the time has come to view the company is a somewhat more positive light. This is due to a combination of the current valuation, improving fundamentals (with caveats) and the increasingly negative sentiment both in...
Still a reprieve in name only. A series of US suppliers are soon to be granted licenses to supply Huawei but picking apart commentary from US officials over the last few weeks, it is clear that this will provide no relief whatsoever to Huawei’s current predicament. Bloomberg (see here) has conducted an interview with commerce secretary Wilbur Ross who made...
Engineering disease bill rises to $16bn. Doctor Porat has been able to do very little to treat Google’s chronic case of engineering disease (see here), the bill for which is about to rise to $16bn (hardware acquisitions minus divestments) and where the outlook remains very difficult. Fitbit has done what I always thought it would to do (see here) and...
Pinterest is back where it started. Pinterest has exactly the same problem that plagued both LINE and KakaoTalk in that users in the home country are very productive but overseas they are virtually worthless. This became clear in Pinterest’s Q3 19 results which missed expectations as the home market is slowing and international is not taking over the mantle of...
Big tech is just fine. Apple FQ4 19 – Accessories assemble Apple reported good FQ4 19 results as wearables and services offset a less than expected decline in iPhone shipments. FQ4 19 revenues / EPS were $64.0bn / $3.03 ahead of consensus forecasts of $62.9bn / $2.84. A 9% YoY decline in iPhone sales was offset by a 16% increase...
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.
Disney+ – Good omens.
Teething problems are a good sign. I see the technical issues at Disney as a good sign because it implies that the demand for the unique catalogue that it has to offer is stronger than expected, putting it in a very strong position long-term. Disney + is off to a difficult start with enough users having trouble connecting to the...