Palantir Q2 23 – Valuation knife edge. Palantir met its numbers but a misunderstanding around revenue guidance for 2023 caused the shares to collapse by 12% before recovering in an indication just how high the valuation of the company has become. Q2 2023 revenues / EPS were $533m / $0.01 broadly in line with expectations but crucially the company generated...
For once, Apple and Qualcomm are on the same page. Amongst a difficult set of results, there are signs of a number of trends that put the company in a good long-term position, and for once, Apple appears to agree that Qualcomm is on the right track. Smartphones, and Android devices in particular are having a difficult time as their...
Apple FQ3 23 – Eating Android. Apple reported a difficult set of results but weakness in the smartphone market was offset by a strong performance from services and the incremental gains that the iOS ecosystem is making in emerging markets. FQ3 23 revenues / EPS were $81.8bn / $1.26 broadly in line with estimates of $81.8bn / $1.19. iPad revenues...
All about cost-cutting. Meta, Google and Microsoft have all painted a rosy picture of recovery but sifting through the details reveals a reality which is much more sanguine although not as bad as many have feared. Alphabet, Meta and Microsoft all reported good results with revenue growth recovering more than expected as well as improving profitability. In all cases, the...
AI cannot offset the general malaise. The contrast between TSMC and the rest of the semiconductor industry is a result of AI not being big enough to offset weakness elsewhere and the fact that inventory reductions are still going on at the semiconductor companies themselves despite having ceased elsewhere. The Q2 2023 reporting season is now well underway and while...
Radio Free Mobile has departed on a tour of the chateaux and wineries of the Loire Valley and will return on August 2nd.
The fight for the next platform begins. Meta’s decision to release commercial versions of its generative AI models as well as the supposed “leak” of its models have nothing to do with openness being “the best antidote to the fears surrounding AI” as stated by Meta and everything to do with becoming the development platform for the next generation of...
Huawei is not coming back in 5G. Huawei is reportedly planning a 5G comeback in smartphones but while there is no reason why it can’t make 5G devices, they will be so uncompetitive that it might as well not bother. Furthermore, its inability to access the Google ecosystem means that even if it could make good 5G phones, it would...
Strategic investors will pay more. SoftBank is engaging in a strategy to maximise the price at which it can sell Arm with the hope that because strategic investors are very likely to be willing to pay a high valuation, the public market will also. Nvidia is in talks to become an anchor investor in the re-IPO of Arm which would...
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.
WeWork – Still does not work.
WeWork is teetering on the edge. Once a SoftBank darling, WeWork is teetering on the edge of going bankrupt as it has still not fixed the fundamental issues with its business model that I identified before its first attempt at an IPO in 2019 (see here). Furthermore, the fact that its once distant rival, IWG is now much larger, is...