SoftBank & Arm finally get the upper hand. The fight for Arm China that is causing consternation to Arm’s IPO looks to be in its final stages but it has taken an intervention from the Chinese state to unfreeze the process. Arm China is a joint venture between Arm and local Chinese investors that was set up to both allow...
Blood bath opens the door for stock picking. Following the Nasdaq’s biggest one day downwards move in 2 years it is clear that the babies are being thrown out with the bathwater turning the sector into a contrarian, stock picker’s paradise. This is because the two biggest drivers of the market in the short-term are greed and fear with fundamentals...
Uber and Lyft go in different directions. Lyft and Uber go in different directions as Uber’s food business and its much larger size allow it to deal with the difficult operating environment much more effectively. Lyft Q1 2022 revenues / EPS were $875.6m / LOSS$0.57 compared to forecasts of $851m / LOSS$0.55 but it was the outlook for profitability that...
Didi is a classic value trap Didi is undoubtedly one of the cheapest technology companies currently available for investment, but the prospect of being unlisted and untradeable as well as the Chinese state’s apparent war on the company adds too much risk in my opinion. Didi’s short history as a public company is a tale of woe from listing on...
RFM will return after the Eid el Fitr holiday on Wednesday 4th May.
Apple FQ2 22 – Rug sweeping Apple reported good results but warned on FQ3 22 blaming the supply chain, but I suspect that there is also a degree of softness in demand triggered by inflation that is causing the weakness. FQ2 22 revenues / EPS were $97.3bn / $1.52 nicely ahead of forecasts of $94.1bn / $1.43 but forward-looking commentary...
Meta Platforms Q1 22 – Short squeeze Meta Platforms reported good results and has returned to low user growth, but the current tough outlook leads me to think that the 19% jump in the shares in after-hours trading was driven by short positions scrambling to cover their exposure rather than a fundamental turnaround in the stock. Q1 2022 revenues /...
Microsoft FQ3 22 – Enterprise offers inflation haven. Microsoft reported excellent results as Azure fought off competitive threats and the enterprise demand remained immune to inflation pressure. FQ3 22 revenue / EPS were $49.4bn / $2.22 nicely ahead of estimates of $49.0bn / $2.19. Azure (cloud) was once again the star of the show turning in 49% YoY growth which...
The board caves to shareholder pressure. Twitter’s board has grudgingly accepted Mr Musk’s offer to acquire Twitter which I suspect is going to involve a complete management and board clearout and much greater clarity on content moderation policies. Mr Musk’s offer of $54.20 per share is being recommended by the board meaning that barring regulatory hold-ups, the deal now looks...
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.
Palantir Q1 22 – Knock knock!
Getting close to interesting territory. Palantir joins the list of companies that report a slight miss that causes a big sell-off in the shares that has another high-flying technology stock knocking on the door of value territory. Q1 2022 revenues / EPS were $470m / LOSS$0.05 broadly in line with forecasts of $443m / LOSS$0.05. Growth varied widely between government...