Peloton finally gets one right. Peloton’s move into virtual cycling games should provide some exclusivity for its bikes which if taken to its logical conclusion may help cushion the company from further gross margin erosion. Peloton has released a new game called Lanebreak for its bikes which is similar to the common rhythm games for mobile phones except that with...
Part I can be found here Part II – Aurora demands the shirt off the investor’s back. The valuation of this deal is even more divorced from reality than Tesla and the EV SPAC crowd that it has spawned as I value this business at $1.1bn which is 90% below the $11bn being asked. Typically, these SPACs have revenues beginning...
A look at the Aurora SPAC in two parts The autonomous trucking company is going public at $11bn with mediocre technology and a financial plan that will not see the company generate any profit before 2027. This profile reveals a proposition that is on the extreme end of risk meaning that the valuation should be orders of magnitude lower in...
Tencent’s treatment will help predict what happens to everyone else. Of the two possible motivations that lie behind the increasing regulatory clampdown on the Chinese technology sector, it is the fate of Tencent that will demonstrate most clearly what the Chinese state is thinking. Tencent is no stranger to regulatory heat and its earlier brush with the state has taught...
Netflix goes for gaming. Netflix’s move into gaming looks to be more about increasing loyalty to keep competition at bay as opposed to another way to make more money for now. Netflix has cemented its rumoured move into gaming with the hiring of Mike Verdu from Facebook who was in charge of encouraging developers to write games for the Oculus...
New Auto raises new issues. VW has outlined how it plans to transform from a petrol-powered box shifter into a vendor of software and services, but this throws up a number of challenges which VW must address head-on if it is to have any chance of attaining its goals. VW has presented its “NEW AUTO” strategy and has set out...
Sharks gather to capitalise on Didi’s woes. The brutal suspension of Didi’s app has left the door wide open for all of Didi’s previously crushed rivals to emerge and have another go at taking pieces of Didi’s business and its assets (drivers). This is far more dangerous than it sounds because in network-based businesses such as these, once dominance has...
Apple is pushing spending away from mobile. Unsurprisingly, iOS users are opting not to be tracked which has led to an exodus of marketing money from iOS which does not appear to be going to Android but instead returning to where it came from. Data from Branch Metrics Inc. indicates that less than 33% of iOS users agree to be...
AT&T admits that it can’t compete. By selling its Network Cloud platform to Microsoft and moving all of its 5G core over to Azure, ATT is admitting that it cannot compete in this area and is looking to lower its costs as much as it possibly can to compete on the cost of packets. This is in line with its...
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.
Semiconductors – Exception or canary?
Texas Instruments raises questions on the supercycle. Texas Instruments bucked the semiconductor super cycle narrative in its Q2 2021 results with a forecast that has led some to question whether the semiconductor cycle is already peaking. Q2 2021 revenue / EPS were $4.58bn / $1.99 compared to estimates of $4.36bn / $1.83 but it was in the guidance where concerns...