AI could make work better not worse. The AI debate continues to dominate public discourse with the emphasis now being on the job market and while there are going to be some effects, they are unlikely to result in millions of white-collar workers being out of work. The other problem with this debate is that it is already becoming highly...
Palantir and Lucid together demonstrate the mood of the market. Palantir Q1 2023 – Generative AI use case. Palantir reported an excellent set of results reinforcing the view that it has no real competition and that it is in a good position to help governments and companies use generative AI in their activities. Q1 2023 revenues / EPS were $525m...
Hardware rocks but AI flops Apple executed a pretty flawless quarter with market share gains in emerging markets offsetting the macro, but it is clear that when it comes to AI, Apple is miles behind. FQ2 2023 revenues / EPS were $94.8bn / $1.52 slightly ahead of estimates of $92.6bn / $1.43. Revenues were down YoY but if one excludes...
Down cycle sinks all boats. Qualcomm FQ2 23 – Well positioned Qualcomm reported results that demonstrated its ability to manage its business but was forced to guide weakly as the economy refuses to play ball. Qualcomm reported FQ2 2023 revenue / Adj-EPS of $9.3bn / $2.15 in line with what the company had guided for, but it was more cautious...
Humans are at risk from humans, not machines. The exit of Geoffrey Hinton from Google has caused a stir and has reignited the AI safety/Armageddon debate, but the reality remains that humans are at much greater risk from humans than they are from machines which remain as dumb as ever. Geoffrey Hinton is widely known as the “godfather of AI”...
Bill Ready looks out of his depth. The outlook for this company now completely depends on cost-cutting as OPEX remains ridiculously bloated and I have serious concerns that Bill Ready has the stomach for this kind of pain as he appears to be focused on nothing but growth. To make matters worse, I get the impression that the company is...
Amazon – Darling has a dog day. Amazon reported good results but then went on to warn that cloud growth would slow which reversed a 12% rally to a 2% decline in after-hours trading. Q1 2023 revenues / EPS were $127.4bn / $0.31 ahead of forecasts of $121.6bn / $0.20 which were expected to be missed explaining the 12% rally...
Meta continues to rise from the ashes of 2022. Meta Platforms roared back to life with an excellent set of earnings which give it a platform to resume investing and, as long as it does so soberly, there are better times ahead. Q1 2023 revenues / EPS were $28.6bn / $2.20 nicely ahead of forecasts of $27.6bn / $1.97 and...
Two sides of the same story in search. Google and Microsoft both reported good results but took very different lines on what AI is doing to search with Google saying all is well and Microsoft saying that everything is about to change. Microsoft FQ3 23 – Offense. Microsoft reported excellent results and promises of good growth and tight cost control...
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.
Google I/O 2023 – Fightback
Google mounts a steady fightback. Google is clearly still on the back foot, but the sense of panic and disarray has gone to be replaced with a sense of purpose and its hardware division has finally come up with a compelling product. Unsurprisingly, the whole show was all about generative AI and how Google is not the laggard that the...