Tarana Wireless: One of those great unsolved tech problems that could go big
“Wireless technology has advanced to the state where, five years from now, we're going to look back and people aren't going to blink when they say whether it's wireless or fiber — it’s not going to matter.”
Pure Storage CEO: More and more, a software company
“We have been told by Adobe and other companies that have gone through this that fifty percent is roughly the turning point […] That’s when investors start paying attention.”
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It’s been over three years since The Technology Letter got started. I’m interested to know what you think of what’s offered here.
Enovix sinks, but the news is not so dire
The Street hates surprises, which is why shares of Enovix, which is working on a revolutionary silicon-based lithium-ion battery, saw its stock drop over twelve percent Tuesday after it announced it would shift some its manufacturing focus from its factory in Fremont, California, to one in Malaysia.
I think the change may not be as dire a situation as people are taking it as. But Enovix is basically a startup company, facing plenty of challenges, and any perceived shift in its strategy can make the Street nervous.
Enovix CEO: building the world’s next great battery
“What the investors are betting on, is, that these guys will execute.”
Zscaler CEO Chaudhry: disrupting the old guard is a mega-opportunity
“We said, don't do network security, instead, simply build a smart switchboard that connects party party A to party B securely, and that's what has created a big opportunity.”
For ASML, AI increases everything
An interesting couple of notes appeared over the transom this week regarding Netherlands chip equipment titan ASML Holding, one of the TL20 stocks worth considering.
There was no immediate news event for these notes, just what appeared to be a spontaneous rush to endorse a good company’s stock.
The theme of the notes, you could say, was, Chip making is only getting harder, and that’s always good news for ASML.
In case you’re unfamiliar, ASML makes laser light sources for what’s known as photolithography, where a light is shown through a mask or screen, imprinting a pattern of circuits on the photosensitive layers of a semiconductor wafer such as silicon. That’s how circuits are carved into the wafer to become chips.
Some software stocks have gotten even cheaper
Despite an average rise of eight percent since the start of the year, many software company stocks are cheaper now than six months ago and one year ago, based on a group of one hundred and sixty-one software stocks out of a total universe of about five hundred and fifty U.S.-listed tech stocks.
The table below plots the change in one key measure for software stocks, their enterprise value divided by the next twelve months’ projected revenue according to FactSet consensus. Enterprise value is the total value of the company when you add up the shares outstanding and then subtract net cash, meaning, cash and equivalents and long-term investments, less long-term debt.
