Palantir is punished for its high revenue multiple. Palantir reported reasonable results but a small FX-related adjustment to guidance sent the shares down 11% in an indication of just how nervous the market remains about companies that still have high short-term to medium-term valuations. Q3 2022 revenues / Adj-EPS were $477.9m / $0.01 in line with forecasts of $474.9m /...
Coinbase has further to fall. Cryptocurrencies have stabilised around current levels but activity in the space has declined greatly, meaning that exchanges and banks need to make the investment case on valuation which is something that Coinbase is still not able to do. Coinbase reported depressing Q3 22 results with revenues / EPS of $590.3m / LOSS$2.43 compared to forecasts...
The long-term scale tips in Qualcomm’s favour. A good set of results marred by a difficult outlook for FQ1 & FY 2023 also contained a few medium-term positives which were, as usual, completely ignored by the market which sent the shares down a further 6.8% in after-hours trading. This combined with a 2023 PER of 12.3x leads me to think...
AMD and Sony beat on company-specific issues. AMD Q3 2022 AMD met expectations and guided better than expected not because there has been a sudden bounce in demand but because it is taking market share which is a small positive sign in that the market itself may not be as bad as Intel implied. Q3 2022 revenues / Adj-EPS were...
Meta investors do not have a leg to stand on. Meta investors are starting to whine about the bad corporate governance practices at Meta as Mr Zuckerberg appears to be unwilling to revise his strategy, but the reality is that investors have no grounds whatsoever to make any complaints. The heart of this issue is that after a set of...
Autonomous driving enters the capitulation stage Autonomous driving continues to have a torrid time as its devotees adjust to the reality that has been obvious for quite some time. Argo AI is the latest victim which combined with Tesla being the subject of 2 NHTSA defect investigations and plummeting valuations puts autonomous driving firmly in the capitulation phase of the...
Amazon Q3 2022 – Humble pie Amazon reported good results, but the traditional holiday season is going to be weaker than expected further reinforcing the view that Amazon has expanded too quickly and too far. Q3 2023 revenues / EPS were $127.1bn / $0.28 which was in line with revenue forecasts of $126.8bn but ahead of EPS forecasts of $0.21...
Ms Sandberg is already badly missed. The results were bad but engagement with its services has remained steady which is the one saving grace for a company where its investments look set to eat through even more of its profits in 2023 than they have in 2022. The prospect of falling earnings as the company continues to invest with seeming...
The pandemic bill comes due. The technology sector is feeling the pinch as consumers and businesses have less money to spend as a result of everyone paying for the pandemic through rampant inflation and higher interest rates. The result is that growth expectations are being reduced and as such, this means that multiples are going to come down. This sends...
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.
Renault, Qualcomm & Google – More GAS.
Renault finally lets Google off the leash. Renault has announced its new long-term strategy and for EVs, it is deepening its partnership with Google & Qualcomm which in my opinion is the first time that Google has managed to get proper traction. However, this will come at a cost to Renault because letting Google run the services in its vehicles...