Device pays the hype price. There is nothing wrong with the Magic Leap One when compared to its peers, but relative to what Magic Leap promised, the device is very disappointing. This is the problem with failing to appropriately manage expectations as the general opinion of this device is now not as good as I think it should be. Comparing...
Gross margin of 6.7% is all one needs to know. Xiaomi reported what is being received as a reasonable set of results, but in my opinion, these results further highlight Xiaomi’s chronic inability or unwillingness to make money for its owners. Q2 18 revenues / adj-EBIT were RMB42.2bn / RMB1.6bn (3.9%) after removing the one-off impact of stock compensation and...
Cable cedes users to a combination of streaming and OTA. The usage of digital antennas to receive over-the-air broadcast TV is continuing to rise in yet another sign that the cable TV subscription is facing an existential threat. The latest research from Parks Associates (see here) has found that the penetration of digital antennas has increased to 20% from 16%...
Way too early to go public. Most metrics for Qutoutiao are pointing in the wrong direction, leaving only its relatively low penetration of the Chinese market as a positive. Qutoutiao is a content aggregator which makes some sense in a world where there is so much content that finding what one likes is increasingly difficult. On the plus side, those...
Lyft may be causing more problems than it should. Uber produced a quarter where revenue growth slowed and there was little sign of the profitability that would indicate that Lyft is no longer a problem giving a clear path to a successful IPO. Q2 18 revenues / net income were $2.8bn / LOSS$891m with revenue growth of 63% and...
RFM will return from fishing on August 16th.
Hopefully, the indication of profits can become reality. Amazon produced good results making up for a revenue shortfall with profitability, raising hopes yet again that at last Amazon is at last beginning to make money for its owners. Q2 18 revenues / EPS were $52.9bn / $5.07 slightly adrift of revenue expectations of $57.6bn but well ahead of consensus EPS...
AI chickens come home to roost. The chickens have finally come home to roost as Facebook has guided very badly for medium term as its weaknesses in AI are forcing to keep hiring humans to do the jobs that the machines are incapable of. The response was a 20% decline in the shares in after-hours trading. Outside of guidance, Facebook’s...
Bixby is a reason not to choose a Samsung device While all eyes will be on the Galaxy Note 9 at Samsung’s next launch event, Bixby 2.0 is likely to debut in a smart speaker which may actually damage its sales potential. Bixby is Samsung’s attempt to compete against Google Assistant and Amazon Alexa and so far, it has been...
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.
Didi – Broken panda.
Didi has its Baidu and Facebook moment. Chinese technology companies have a culture of moving fast and breaking things, and while Didi got a free pass from the regulator for the first incident (unlike Baidu), it is unlikely to get off scot-free the second time. Another passenger looks to have been the victim of a homicide perpetrated by a driver...