All good. My big beef is the measly 3% QoQ revenue growth.
Tech stocks (like 5GG) imho want to: 1. come up with the killer app (5GG's killer app - good cheap wireless internet in the land of shit internet); 2. splurge cash into capex to capitalise on first mover advantage, secure economy of scale to support the killer app, and drown out the opposition; and 3. focus on aggressively building user base *and* revenue so earnings turn around once the capex binge ends.
5GG have performed 1 and 2, but my concern is 3. I agree 58k cloud gaming users sounds like a good start. But they were given the product for free. And that product - Nvidia's cloud gaming platform - how will that translate into revenue? And what was the opportunity cost of putting all that cash into a new product rather than the good cheap internet which is the company's flagship asset?
I personally would much rather be seeing those little white dishes all over houses in Melbourne and Sydney. Writing this comment has almost talked me into buying some more 5GG. They can't go any lower right...
5GG Price at posting:
39.5¢ Sentiment: Hold Disclosure: Held
