Best case valuation is almost zero. The gap between Faraday Future’s spin in its press releases and the reality of its SEC filings has never been larger, but even in the best-case scenario, there is likely to be so much equity dilution that the shares in issue now are worth almost nothing. Faraday Future reported its Q3 2022 results which...
Hubris once again found wanting. The failure of Meta’s scientific language model to survive for more than three days online is just another sign that when it comes to AI, the machines are far too stupid to do anything that they have not been explicitly shown before. Galactica is a language model created by Meta that is designed to help...
The turn depends on Covid Zero policy. Alibaba reported reasonable results where e-commerce remained flattish but an increase of share buybacks to $40bn to the end of 2025 provided much-needed support for those patiently waiting for the recovery. FQ2 23 revenues were RMB207.2bn some RMB3.4bn (1.7%) below consensus of RMB210.6bn as local e-commerce stagnated and newer businesses like food delivery...
Two tech segments worlds apart. Nvidia and Cisco managed to reassure the market with reasonable results pointing to steady enterprise spending but Micron, Amazon, and Meta Platforms all point to inflation-linked softness in consumer expenditure. Nvidia reported reasonable results where once again, excellent execution in the enterprise helped offset the triple whammy (consumer, crypto & inventory) that has hit the...
Another investor without a leg to stand on. Another investor has come out of the woodwork to criticise Alphabet’s expenses and its hiring practices but once again, this investor has no grounds whatsoever for complaints in my opinion. This time the company is Alphabet and the investor is TCI which holds $6bn of Alphabet shares and is criticising the high...
Apple must address the Metaverse but not yet. According to the media chatter, Apple was supposed to release a Metaverse device this year, but I continue to think that this makes no sense at all before 2025 at the earliest. This is very likely to go hand-in-hand with its own version of the Metaverse creating yet another silo, which if...
AI can’t rescue this one. The general malaise in advertising is by no means limited to the big names as even TikTok which has gained a lot of market share in the last few years is feeling the pinch and has been cutting its estimates for 2022. TikTok’s original forecast made earlier this year was for revenues of $13.3bn but...
Zuckerberg throws his gadflies a bone. If Mr Zuckerberg really intends to cater to the interests of minority investors he should immediately realign his voting interest in the company with his economic interest as the cuts announced this week are not much more than a token gesture. Meta Platforms has announced that it will cut 11,000 employees in a move...
The crash continues The collapse of FTX is doing further damage to the now very fragile crypto proposition but I have no doubt that once the dust settles, blockchain & cryptocurrencies will survive as will Coinbase although I suspect that the shares still have further to fall. However, FTX is almost certainly worthless in yet another example of Softbank leading...
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.
Zoom – Circle of life
Consumer is in trouble. Zoom reported results that show that the pandemic boom is well and truly over and while the valuation has returned to levels that one could consider sensible, the risk of commoditisation and competition is now very real. This means that even though the shares have done a full circle back to where I first noticed them...