Companies

Today we’re making changes to our Apple model. While the fallout from coronavirus is impossible to estimate, we believe Apple will be well-positioned when we turn the corner. Bottom line: Apple investors should rest easy. As long-term investors, we seek…

Gaming is an undeniable long-term growth opportunity. Games like Fortnite have become a growing part of pop culture, game streamers are taking young audiences away from mainstream and YouTube content, and esports has emerged as an exciting way for gaming…

This year is going to be ugly for the auto industry, and Tesla is showing signs that it has a powerful demand advantage over its competitors. March quarter delivery numbers were up 40% year over year to 88.4k compared to…

In the wake of COVID-19, consumers around the globe have been forced to change their buying habits. For many, ecommerce has become the preferred—or only—way to buy goods, a change that will likely accelerate the adoption of ecommerce by 2-3…

The Nikkei Asian Review reported that Apple “is preparing the ground to possibly delay the launch of the first 5G iPhones … with a worst-case of delaying the launch until 2021,” given engineering and supply constraints. We have a different…

It would be easy to get overwhelmed by the fact that everything has changed for a time. But, in an attempt to understand the new trajectory of our world, we resolve to push through and try to separate what we…

Tesla announced that its Fremont and Buffalo factories are closing production indefinitely. This, of course, is the prudent move, prioritizing employee safety. Given the company’s current $8B plus in cash on hand and the fact that variable production costs will…

Update: as of Wednesday, March 18th, Tesla is continuing operations at Fremont, we believe at about 25% capacity. We continue to believe that the company will eventually have to shut down the factory altogether apart from “minimum basic operations” to…

We’ve been tracking lead times of four key Apple products in 13 countries since mid-February 2020 and recently found supply has improved over the past two weeks. Recent Changes to Availability iPhone (~52% of revenue) supply, as measured by the…

Apple recently announced further steps in response to the spread of COVID-19. Bottom line: we applaud the leadership role Apple has assumed in taking these steps despite the near-term negative impact on revenue. Our takeaways: The impact of retail closings:…

After Elon Musk tweeted that Tesla is currently scouting locations for a Cybertruck/Model Y Gigafactory, we began exploring the potential impact of Tesla producing cars in locations outside of Fremont, CA. As expected, we found that diversifying manufacturing locations is…

We’re updating our Apple Wearables, Home, and Accessories model. This category includes two signature products, Apple Watch and AirPods. While Apple does not report details on those segments, the company has made 27 guiding comments since Dec. 2014 related to trends…