Didi is a classic value trap Didi is undoubtedly one of the cheapest technology companies currently available for investment, but the prospect of being unlisted and untradeable as well as the Chinese state’s apparent war on the company adds too much risk in my opinion. Didi’s short history as a public company is a tale of woe from listing on...
RFM will return after the Eid el Fitr holiday on Wednesday 4th May.
Apple FQ2 22 – Rug sweeping Apple reported good results but warned on FQ3 22 blaming the supply chain, but I suspect that there is also a degree of softness in demand triggered by inflation that is causing the weakness. FQ2 22 revenues / EPS were $97.3bn / $1.52 nicely ahead of forecasts of $94.1bn / $1.43 but forward-looking commentary...
Meta Platforms Q1 22 – Short squeeze Meta Platforms reported good results and has returned to low user growth, but the current tough outlook leads me to think that the 19% jump in the shares in after-hours trading was driven by short positions scrambling to cover their exposure rather than a fundamental turnaround in the stock. Q1 2022 revenues /...
Microsoft FQ3 22 – Enterprise offers inflation haven. Microsoft reported excellent results as Azure fought off competitive threats and the enterprise demand remained immune to inflation pressure. FQ3 22 revenue / EPS were $49.4bn / $2.22 nicely ahead of estimates of $49.0bn / $2.19. Azure (cloud) was once again the star of the show turning in 49% YoY growth which...
The board caves to shareholder pressure. Twitter’s board has grudgingly accepted Mr Musk’s offer to acquire Twitter which I suspect is going to involve a complete management and board clearout and much greater clarity on content moderation policies. Mr Musk’s offer of $54.20 per share is being recommended by the board meaning that barring regulatory hold-ups, the deal now looks...
Musk gains the upper hand but at a price. Elon Musk is getting closer to acquiring Twitter but he still needs to deal with the poison pill and the level of risk that he is assuming (and putting onto Tesla shareholders) is not insignificant. Elon Musk has announced that he has secured a $46.5bn financing package which will enable him...
Snap survives TikTok. Snap reported good Q1 2022 results that were more impacted by Russia than they were by TikTok raising the possibility that TikTok’s incursion into Western markets may be slowing down. Q1 2022 revenues / EPS were $1.06bn / LOSS$0.22 which was slightly behind estimates of $1.05bn / LOSS$0.19 but the good news was to be found in...
Hubris mars credibility. Tesla reported great results but then marred its improving credibility by making unrealistic predictions about robotaxis that it has no real hope of fulfilling. Q1 2022 revenues / EPS were $18.8bn / $3.22 nicely ahead of forecasts of $17.9bn / $3.22. Profitability was driven by a shift in the sales mix towards more expensive vehicles and a...
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.
Uber and Lyft – Parting of the ways
Uber and Lyft go in different directions. Lyft and Uber go in different directions as Uber’s food business and its much larger size allow it to deal with the difficult operating environment much more effectively. Lyft Q1 2022 revenues / EPS were $875.6m / LOSS$0.57 compared to forecasts of $851m / LOSS$0.55 but it was the outlook for profitability that...