Two sides of the same story in search. Google and Microsoft both reported good results but took very different lines on what AI is doing to search with Google saying all is well and Microsoft saying that everything is about to change. Microsoft FQ3 23 – Offense. Microsoft reported excellent results and promises of good growth and tight cost control...
Good luck and good timing give great results. Microsoft is backing away from bundling Teams with Office 365 which I expect will have no impact at all on its use and popularity as it is now popular enough that the network effect alone will continue to ensure its success. Microsoft has announced that it will no longer bundle Teams with...
A situation that makes little sense. The dispute between Arm and Qualcomm is one of the more bizarre that I have seen in my time, but it is descending into the usual tit-for-tat which is likely to end in a settlement at some point. What is unusual in this case is that Arm opened hostilities right before its IPO (where...
Inventory correction offset by China. TSMC reported weak Q1 2023 results and guided down expectations, but this had been anticipated which combined with some initial positive signs on the Chinese economy, sets up a better H2 2023. Q1 2023 revenues / EPS were TWD 507bn / TWD 7.98 representing incremental growth from Q1 2022 but down significantly from Q4 2022...
A promise that will never come true. The promise of fantastically profitable robotaxis will never come true meaning that lower margins as Tesla falls into line with the rest of the industry are probably here to stay. Hence, the valuation remains orders of magnitude higher than it should be. Tesla reported reasonable results with Q1 2023 revenues / Adj-EPS of...
Now the real work begins. OpenAI has admitted that the limitations of massive compute and massive data may have already been reached meaning that to make these systems useful, ways need to be found to implement them cheaply and make them less crazy. At an event last week at MIT, Sam Altman, CEO of Open AI admitted that making the...
Bing chat is not ChatGPT. Samsung is weighing up a switch to Bing on the basis that its GPT-generated search results are better than Google’s which is a proposition that I think has little basis in reality. Google is currently the default search engine on both Samsung Android devices and Apple devices which is a reflection that in the current...
GM’s biggest problem is the media. GMs decision to end support for Apple CarPlay and Android Auto has sparked a negative reaction from the Apple-loving technology press that seems to have put finger to keyboard to generate clicks rather than to inform. GM has announced that its EVs from mid-2024 will no longer support Apple CarPlay or Android Auto which,...
No one is thinking about economics at the moment. It looks like Intel’s requests for more subsidies to build leading-edge fabs in Germany will pay off, but the subsidies are still likely to be below those available in Asia once again underlining that semiconductors right now are all about geopolitics and not economics. Intel is currently in line to receive...
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.
Meta Platforms Q1 2023 – The phoenix
Meta continues to rise from the ashes of 2022. Meta Platforms roared back to life with an excellent set of earnings which give it a platform to resume investing and, as long as it does so soberly, there are better times ahead. Q1 2023 revenues / EPS were $28.6bn / $2.20 nicely ahead of forecasts of $27.6bn / $1.97 and...