Priced for stagnation Alibaba reported reasonable results but heavy investments, competition and China’s restrictive zero COVID policy are hurting both growth and profitability in the short term. I think that China is going to be forced to abandon zero COVID reasonably soon which, combined with stepping up to meet the competitive threat, should mean that growth will come back over...
Chinese regulators come out swinging for round 2. It looks as if another round of crackdowns is about to be launched upon the Chinese technology sector and it is Tencent that remains by far the most exposed this time around. After a period of relative calm which emboldened the bottom fishers, it looks like the Chinese state is not done...
Intel turns its hand to disruption. The first signs of Intel’s new identity are beginning to emerge with the launch of a new product that aims to challenge Chinese dominance of equipment for Bitcoin mining / Blockchain computing. This is something that is badly needed in this industry where the verification of transactions on the distributed ledger is inflexible, slow...
The clue is in the name. I have been sceptical on many companies and projects (and been proven wrong in many cases) but the technology and the company I am most sceptical about is Virgin Hyperloop which appears to need to get rid of the laws of physics in order to get off the ground. Reality is starting to really...
The first example of “build the wall”. With the strategic rivalry between the West and China rapidly evolving into an ideological struggle (see here), new technologies that emerge are likely to be governed by two standards: one for China and its partners and another for everyone else. The current excitement around the Metaverse is a great example of this as...
The lack of profit is getting on investors’ nerves Palantir picked a bad day to slightly disappoint as the general risk-off sentiment around Ukraine greatly amplified Palantir’s punishment potentially creating an opportunity. Q4 21 revenues / EPS were $433m (up 34% YoY) / LOSS$0.08 compared to consensus at $418m / LOSS$0.05. Guidance for the coming quarter was also very slightly...
The sky-high valuation outweighs all the good fundamentals. Nvidia rallied from its loss of the Arm acquisition by reporting good Q4 21 results and by winning a landmark partnership with Jaguar Land Rover (JLR), but that was not enough to support the valuation where it looks like Nvidia does not have the horsepower to justify its multiples in this more...
Roblox suffers a big hangover from the COVID party. Another Metaverse darling is struggling with slower growth underlining that the Metaverse is many years away making it un-investible for all intents and purposes. The latest stumble comes from Roblox which reported weaker than expected results which caused the shares to fall another 13% despite having nearly halved in the last...
Sea is in for further rough weather. Sea has taken a big hit as India has banned its most popular game, Free Fire, creating the concern that the growth of the company could evaporate meaning that its valuation should be far lower. Sea is Southeast Asia’s biggest digital ecosystem covering both the Gaming and the Shopping segment and derives the...
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.
MWC 2022 Day 0 – All about the numbers
Zero or Hero Mobile World Congress returns in earnest in 2022 which will prove to be a real test of how much damage the lockdown and video conferencing has done to in-person events. The GSMA (organiser) is expecting 40,000 – 60,000 attendees with 1,500 exhibitors which is considered to be an optimistic forecast. For context, 2019 had 110,000 attendees and...