Google trips over its own feet as a result of its panic. Google is in such a blind panic that it is rushing to market with products and events that are half-baked simply to meet a competitive threat that in my opinion does not exist. Google held an AI event in Paris combined with demonstrations online that were so full...
STOP PRESS Updates below with more details on adjusted EBITDA vs. Pre-tax profit. Buried on page 24 of the earnings statement from SoftBank are details of the amortisation of intangibles taken by SoftBank during the first 9 months of fiscal 2022. This amortisation is not a write-down of goodwill but amortisation that has been scheduled over the course of SoftBank’s...
Look for the picks and shovels of this latest bubble. Google is rushing to market with a competitor for ChatGPT triggering an arms race which will end with huge losses when reality pricks yet another bubble triggering the 4th AI Winter. Google has made two moves very recently: First, Anthropic: Google has made a $300m investment in an OpenAI competitor...
Bad numbers for expensive stocks Apple, Amazon and Alphabet all reported disappointing results and promptly gave up the gain they enjoyed yesterday thanks to the Fed’s more dovish tone when it came to discussing interest rates. Apple FQ1 23 – Expensive stagnation. Apple reported a decline in revenues that were largely triggered by supply chain disruptions but also guided...
There is still lots of fat to cut. Meta reported results that were better than feared, announced an efficiency drive as well as a $40bn share buyback which was exactly what investors wanted to hear but I suspect it could do far more. Q4 2022 revenues / EPS were $32.2bn (down 4% YoY) / $1.76 compared to forecasts of...
Twitter sets a nasty precedent for fat companies. Rotten results highlight that many social media companies are structurally unable to make money because they are massively overstaffed as the benchmark of Twitter seems to indicate. Q4 2022 revenues / EPS were $1.3bn / LOSS $0.18 broadly in line with consensus at $1.3bn / LOSS $0.20. The real problem was the...
Expectations and sentiment continue to worsen. The reduction in PlayStation VR2 volumes for 2023 does not come as a huge surprise as the Metaverse is very far from being ready for the consumer meaning that all the action, for now, will be in the enterprise. What started as an invitation-only event rapidly became all-welcome as demand for the PlayStation VR2...
The sirens are wailing in Santa Clara. It may be the CEO of Rolls Royce who is evoking the “burning platform” meme from Nokia in 2011 (see here) but it looks to me like Intel may be in even worse shape. Intel reported a truly awful set of numbers, declined to guide for 2023 and appears to be losing market...
China makes all the difference. The ideological struggle between the USA and China is making itself felt especially in the semiconductor industry where it has hit Lam Research hard but, as of yet, left ASML unscathed. Lam Research reported a disappointing set of results, reduced forecasts and cut staff while ASML reported a record order backlog and forecast a 25%...
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.
Uber vs. Lyft Q4 2022 – Chalk and cheese
The inevitable trend begins to emerge. Lyft reported weak results and guided badly in strong contrast to Uber which is a sign that Uber’s superior size and network effect are finally beginning to turn the screw on Lyft. Q4 22 revenues / adj-EBITDA of $1.2bn / LOSS $248m which was broadly in line with consensus but guided badly for Q1...