An unthinkable transaction remains exactly that. It looks like Nvidia has thrown in the towel on the transaction to acquire Arm with the likely result now a relisting of Arm or possibly, the company staying as part of SoftBank. SoftBank is the big loser here as the rally in Nvidia’s share price has meant that the $30bn+ profit that it...
Peloton goes on the block. Amazon, Nike, Apple and so on are thought to be considering a purchase of Peloton, which while it has a pretty good fitness brand, also has a business model and demand outlook that is likely to make potential acquirors think twice. The notion that Peloton may be acquired sent the shares up 27% in...
Amazon Q4 21 – AWS to the rescue, again. Amazon reported good results in the face of rising costs, but it was the combination of the price increase for Prime and relief that Amazon is not Meta that sent the shares up an incredulous 15% in after-hours trading. Q4 21 revenues / EPS were $137.4bn / $27.75 compared to...
A further derating is on the cards. Meta reported good Q4 21 results but a flatlining of subscriber numbers raised fears that users are at last beginning to vote with their feet triggering a panicked rush for the exit sending the shares down 22.8% in after-hours trading. This hammering spread through the technology industry with SNAP falling 10% and even...
Alphabet on track for a good 2022 Alphabet reported very solid results as seasonality augmented the secular shift to digital advertising and the potential headwinds caused by Apple privacy issues and economic disruptions caused by the latest pandemic variant had little if no impact. Q4 21 revenues / EPS were $75.3bn (up 32% YoY) / $30.69 comfortably ahead of forecasts...
Semis should fare the best this week. Most of the big tech names will report their results over the next four days and while I expect most to have had a good Q4, China’s Zero Covid policy may well have continued to constrain the economy meaning another tough quarter for Chinese companies. Alphabet (Google) reports on Tuesday with Meta, Qualcomm,...
Reality and interest rates trigger a rout. While the current price correction is likely to mean the end of the road for many of the EV upstarts and the supply chain, there is a baby or two that is being thrown out with the bathwater. Ever since most of the world decided it would commit to being carbon-free by a...
Apple’s scale helps it to get the supply it needs. Apple reported good results as its scale and its excellence in supply chain management ensured that it was able to mitigate the impact of shortages and meet most of the strong demand that it had. FQ1 22 revenues / EPS were $124.0bn / $2.10 comfortably exceeding expectations of $118.4bn /...
Intel Q4 21 – Hard place. Intel reported reasonable results but pressure on gross margins revealed just how hard Intel is finding life at the moment as in a shortage, margins should be going up not down. Q4 21 revenues / Adj-EPS were $19.5bn / $1.09 compared to expectations of $18.4bn / $0.79. The cloud was the main driver of...
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.
Disney FQ1 22 – The insurgent
The streaming war is far from over. Disney reported good FQ1 22 results as Disney+ is continuing to add subscribers demonstrating that in the streaming wars, content remains as important as ever. FQ1 22 revenues / EPS were $21.8bn / $1.06 nicely ahead of expectations of $20.9bn / $0.63 as both Disney+ and the theme parks did much better than...