AMD and Sony beat on company-specific issues. AMD Q3 2022 AMD met expectations and guided better than expected not because there has been a sudden bounce in demand but because it is taking market share which is a small positive sign in that the market itself may not be as bad as Intel implied. Q3 2022 revenues / Adj-EPS were...
Meta investors do not have a leg to stand on. Meta investors are starting to whine about the bad corporate governance practices at Meta as Mr Zuckerberg appears to be unwilling to revise his strategy, but the reality is that investors have no grounds whatsoever to make any complaints. The heart of this issue is that after a set of...
Autonomous driving enters the capitulation stage Autonomous driving continues to have a torrid time as its devotees adjust to the reality that has been obvious for quite some time. Argo AI is the latest victim which combined with Tesla being the subject of 2 NHTSA defect investigations and plummeting valuations puts autonomous driving firmly in the capitulation phase of the...
Amazon Q3 2022 – Humble pie Amazon reported good results, but the traditional holiday season is going to be weaker than expected further reinforcing the view that Amazon has expanded too quickly and too far. Q3 2023 revenues / EPS were $127.1bn / $0.28 which was in line with revenue forecasts of $126.8bn but ahead of EPS forecasts of $0.21...
Ms Sandberg is already badly missed. The results were bad but engagement with its services has remained steady which is the one saving grace for a company where its investments look set to eat through even more of its profits in 2023 than they have in 2022. The prospect of falling earnings as the company continues to invest with seeming...
The pandemic bill comes due. The technology sector is feeling the pinch as consumers and businesses have less money to spend as a result of everyone paying for the pandemic through rampant inflation and higher interest rates. The result is that growth expectations are being reduced and as such, this means that multiples are going to come down. This sends...
Meta’s corporate governance is becoming an issue. The activists are starting to come out of the woodwork voicing their dissatisfaction with Meta, but the reality is that unless they convince Mr Zuckerberg, the only vote they have is with their feet. Altimeter Capital, which owns $325m in Meta has written an open letter (see here) to Meta bemoaning the awful...
Snap is heading towards value territory. Snap reported Q3 2022 results that missed expectations slightly but the resulting crash in the share price is a clear indication that the valuation of the company is still above where it needs to be (although it is getting close to something more reasonable). Q3 2022 revenues / Adj-EPS were $1.13bn / $0.08 below...
RFM has taken a few days off and gone sand skiing. Normal service will resume on October 24th.
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.
Qualcomm FQ4 22 – Opportunity incoming
The long-term scale tips in Qualcomm’s favour. A good set of results marred by a difficult outlook for FQ1 & FY 2023 also contained a few medium-term positives which were, as usual, completely ignored by the market which sent the shares down a further 6.8% in after-hours trading. This combined with a 2023 PER of 12.3x leads me to think...