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...
MoviePass is back with another hare-brained wheeze. MoviePass has returned to life under its original founder with an idea to create a token-based marketplace for cinema coupons but how it will attract any users outside of offering uneconomic, company-breaking discounts is a big mystery. MoviePass has emerged from Chapter 7 bankruptcy in the hands of its original founder Stacey Spikes...
Twitter Q4 2021 – Social graph. Twitter has managed to avoid the depredation of Apple’s privacy features underlining that while Twitter is a niche offering, it executes on that niche extremely well. Q4 2021 revenues / EPS were $1.57bn / $0.21 broadly in line with estimates of $1.57bn / $0.16. Guidance was also in line with expectations with revenues of...
The streaming war is far from over. Disney reported good FQ1 22 results as Disney+ is continuing to add subscribers demonstrating that in the streaming wars, content remains as important as ever. FQ1 22 revenues / EPS were $21.8bn / $1.06 nicely ahead of expectations of $20.9bn / $0.63 as both Disney+ and the theme parks did much better than...
An unthinkable transaction remains exactly that. It looks like Nvidia has thrown in the towel on the transaction to acquire Arm with the likely result now a relisting of Arm or possibly, the company staying as part of SoftBank. SoftBank is the big loser here as the rally in Nvidia’s share price has meant that the $30bn+ profit that it...
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.
Virgin Hyperloop – Unreality bubble
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...