The real pain is yet to come. The problem of selling shares at overinflated prices is that raising more money is extremely difficult which can lead to bankruptcy and forced consolidation as the EV SPACs are just beginning to find out. This is not limited to the EV SPACS but because building cars is capital intensive, it is these companies...
Coinbase is a low-risk bank that is very unlikely to go bust. The current scare surrounding Coinbase is entirely valid in terms of proper risk disclosure but I agree with the CEO that even in a total meltdown, the company is very unlikely to go bust. Due to a new regulation from the SEC, Coinbase was required to add a...
Google puts a placeholder on the Metaverse with a Babel fish. The all-important Google I/O keynote was a fairly humdrum affair with the exception of the soft launch of its Metaverse offering which will be to skip VR and go straight to AR. Google is holding its annual developer conference which is back at full strength for the first time...
Peloton is cheap but Unity is not. Bad results from both companies caused further share price declines but Peloton is moving into deep value territory whereas Unity by any measure remains expensive. Peloton FQ3 2022 – Kitchen sinks the numbers Peloton reported weak results as the CEO effected a hard reset but there is some light at the end of...
Getting close to interesting territory. Palantir joins the list of companies that report a slight miss that causes a big sell-off in the shares that has another high-flying technology stock knocking on the door of value territory. Q1 2022 revenues / EPS were $470m / LOSS$0.05 broadly in line with forecasts of $443m / LOSS$0.05. Growth varied widely between government...
SoftBank & Arm finally get the upper hand. The fight for Arm China that is causing consternation to Arm’s IPO looks to be in its final stages but it has taken an intervention from the Chinese state to unfreeze the process. Arm China is a joint venture between Arm and local Chinese investors that was set up to both allow...
Blood bath opens the door for stock picking. Following the Nasdaq’s biggest one day downwards move in 2 years it is clear that the babies are being thrown out with the bathwater turning the sector into a contrarian, stock picker’s paradise. This is because the two biggest drivers of the market in the short-term are greed and fear with fundamentals...
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...
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...
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.
Twitter – The price of free speech pt. V.
The mercurial Mr Musk takes the story on a rollercoaster. The acquisition of Twitter was never going to be straightforward, but Mr Musk is taking the story on a rollercoaster quite possibly due to the price he offered and the drubbing the sector has taken since. In the last week, Mr Musk has put the deal on hold and raised...