Companies

In 2021, the theme of the Metaverse was top of mind for tech investors, punctuated by Facebook's fall announcement of the name change to Meta. Today, tech investors have shifted their attention to AI, making the potential of the metaverse an afterthought. I believe, over the next decade, the substance of the metaverse will live up to the 2021 hype. That belief is based in part on rising investment and competition from TikTok and Apple to enable that future.

At a time when few western business leaders visit China, Tim Cook's recent visit was the latest evidence of his skill in threading the needle to benefit Apple shareholders. I see this trip as 10% political and 90% business, and it accomplished three things; improved the image of China in the eyes of western management teams, strengthened Apple's brand among Chinese consumers, and bought time for Apple to diversify its supply chain away from China.

On the surface, TikTok CEO Shou Zi Chew's testimony in front of the US Committee on Energy and Commerce showcased an unprecedented level of bipartisan opposition to TikTok. Below the surface lies two realities that are bigger than TikTok; First US-China tensions are increasing, and second, short-form video platforms including TikTok appear to be addictive and dangerous to the youth.

Ahead of the Apple annual shareholder meeting, I've taken an inventory of recent analyst and investor commentary. There are two things that I feel are missing. First, Apple's strength of product demand and favorable economics despite the macro. Second, Apple's wide diversity across product lines, sectors, geographies, and currencies, which affords investors the safety of a consumer staples company. I also have one question to ask management at the meeting: Will Apple Car see the light of day?

Tesla’s investor day ended up being mostly about illuminating the wide lead Tesla has on other car makers. The much-anticipated topic of a Master Plan 3 outline left me with more questions than answers. We do know it will include at least two new models that are, at the earliest, a couple of years away. Big picture; investor day gave me confidence Tesla remains comfortably ahead of other automakers and has a plan for how to significantly ramp deliveries.

Redwood Materials announced conditional commitment for a $2 billion loan from the US Department of Energy, an important milestone for the company to accelerate and expand its US-based battery cell production. While still early, it appears JB Straubel is on track to build a generational company.

It's rare that I write about Apple missing a quarter. For the twenty years I've been following the company, I now count three times results have come in below expectations. As I peeled back the layers of the results along with the company's guidance, the big picture became more clear. Even though Apple's business is being negatively impacted by the supply chain and the macro, the company is maintaining innovation excellence with its core products, optionality with potential new products (AR and auto) and most importantly a loyal, engaged and growing customer base. All signs suggest sunnier days will return for Apple.

Tesla's December quarter earnings was all about the company's 2023 outlook after the recent price cut threw a wrench into how investors should think about the trade-off between deliveries and profitability. The essence of the guidance calls for 50% delivery growth this year, ahead of the Street's 37% target and gross margin ex credits of above 20%, compared to the concern of many investors that they would dip into the high teens. The bottom line: The company appears to have made the right decisions to successfully navigate what will likely be a difficult year for the auto industry.

I’m having a hard time stepping away from ChatGPT. Even with its flaws, it’s a very powerful consumer AI product. I admire how you can repeat prompts to get responses worded differently yet equally accurate. As I think about the…

Apple announced two new chips, the M2 Pro and M2 Pro Max, that are available in the MacBook Pro and Mac Mini. I estimate that these two products account for about 6% of Apple’s total revenue, compared to Mac sales…

When Tesla announced in early January that they would cut car prices in China by about 13%, I began to anticipate price cutting in other countries as well. What was most surprising about the news was the magnitude of price…

While I don’t want to overplay commentary from any one of Apple’s partners, I think it’s critical for investors to track TSMC updates given that Apple accounts for 25% of their revenue. TSMC produces the chips at the heart of…