Google Q3 19, Another Softbank write-down, Huawei’s UK respite. Google Q3 19 – Core drives. The rest lags. Alphabet reported good Q3 19 results that were poorly received as cost pressure from Google Cloud roll-out and the strong US$ dented profitability. Q3 19A revenues / EPS were $40.5bn / $10.12 compared to consensus at $40.1bn / $12.46 with further profitability...
Better search but not assistant. Google is going to get even better at search which will improve its relevance with users and increase its dominance, but it won’t help in the struggle with Amazon for the smart home Google has announced the launch of a major revision to its search engine which sees it improve its relevance in the long...
Radio Free Mobile is taking a short break. Daily commentary will resume on October 28th.
Goodbye blue sky. Softbank needs to take a good hard look at its processes as the valuation that it is prepared to pay for WeWork has fallen by 83% in a matter of weeks despite no fundamental change in the business outlook for WeWork. Softbank looks set to bail out WeWork in a deal that will see it inject a...
Airbnb is not WeWork. Airbnb is being tarred with the WeWork, Uber and Lyft brush, but a closer look reveals a company that has already proved that it can make money. Whether the company is worth the $31bn it was valued at when it last raised money is a story for another day, but what is clear is that it...
Vested interests sink Libra. There are certainly regulatory issues that need to be addressed with Facebook’s or any digital currency, but I suspect that the main reason for Libra’s failure is the protection of vested interests. The banking system as it exists to today is not fit for purpose. Despite massive consumer digitisation, it is still slow, overly bureaucratic, expensive...
Nice innovations but virtually no buyers. Google held a fairly subdued affair where it launched a new smartphone, earbuds, Chromebook and a smart home offering. The AI runs everything mantra has certainly been toned down this year as I expect it didn’t help volumes last year which remained pitiful. Instead, Google focused on the functionality of the new devices that...
Good and bad news for OEMs. Android Automotive has finally made it onto the Volvo XC40 marking Android Automotive’s arrival into the mainstream but it’s only the electric version supporting my view that OEMs have a little time to get their houses in order. Audi and Volvo announced their intention to use Android Automotive in 2017 and promises were made...
No change in technology outlook. The USA and China came to a very preliminary agreement on Friday which worked out better for China (in Alastair Newton’s opinion see attached) but did not address Huawei or the other technology issues meaning that the technology rivalry remains very much alive. By far the most important measure is the suspension of any further...
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.
Grubhub – The end begins.
Grubhub clearly demonstrates a lack of barriers. Grubhub reported reasonable Q3 2019 results compared to already lowered expectations but took expectations even further down in a clear demonstration that there are no barriers in this brutal business. Grubhub Q3 19 revenues / EPS were $322.1m / $0.01 both below consensus of $330.0m / $0.02 but not enough to trigger the...