Razer [1337.hk]

I would like to start rallying all the Razer Freetrade fans on requesting Freetrade.io to include Razer into the list of awesome portfolios.

The only way we can buy Razer shares is from Degiro, which not big fan off. If Freetrade can pull it off it will be a huge game-changer for the Millenials investors.

I am a huge investor already and would like to do it via my ISA here.

read my blog review on RAZER

thanks all and have a good day!

Dr Alex Koh

I think this is a strong & growing company, with bright prospects. IMO it’s their FinTech/RazerPay business hat will end up driving most future growth, and potentially make them an acquisition target.

This is their results PPT from 22 August: http://irmedia.razer.com/201908221759011728958360_en.pdf?_ga=2.245444676.1951510890.1571217918-769766009.1571217918

Tangentially related - I look forward to having HK stocks available on FT! Hopefully also allowing HK customers to trade them on the platform. :slight_smile:

1 Like

Welcome MooMooCoo. I’m struggling a bit to see the value here, but I’m keen to learn more. A loss making business that derives ~85% of revenue from hardware. Is the real potential in the software and cloud part? Is being like Apple of the early '90s compliment?!

Hey Anders, how are you? Razer is one real unorthodox company. One that doesn’t follow the basic start-up business. You are right to be skeptical about how a computer mouse selling company decides to even get IPO for. I was on the same thoughts as you.

I followed Razer on social media for at least 7 years on their journey from nothing to IPO. Now the crazy CEO wants to sell an overpriced toaster. Why the early 90’s compliment?
-Tan Min the young and charismatic CEO is the founder and driver of the company. He is using social media to brand his company globally.
-A small company out there to fight with bigger more established players in various areas. (Pheripherals, Phones, Laptops, cashless transactions, drinks)
-Re-investing all his earnings into his research and trying to oust his competition.
-Not afraid to collaborate with the various competition, political bodies and industry.

If you look at the technical analysis it fails all front. I am looking at the future prospect value or emerging esports, diversification in products to accommodate both hardware/software of the gaming business, untapped business products, potential blockchain gaming, cashless transactions in the southeast Asian economy.

A few cool points to know.
-Their Razer laptops may not sale more than MacBooks. But they perform better and well regarded in the reviews community. Despite costing more than dell laptops, they are considered as premium laptops in the windows world
-their phone technology was 18 months ahead and more superior than the iPhone in gaming. With the lack of mobile gaming currently, they can’t seem to break out.
-They have failed in many avenues such as steam store alternative, Oyga gaming buyout. But they continue to innovate and try various avenue to evolve the gaming community.
-They Own THX, so for every cinema that has THX technology they earn passive royalty.
-The cult following of Razer is mind-blowing.

Laptops are very commoditised products with long renewal cycles, no matter how shiny they are.

The winners will always be Nvidia (GPUs), Microsoft, AMD (GPU/CPU), Intel, other chipmakers—they control the software and core hardware inside those machines. Linux and all are free, so they don’t count.

Steam is doing well. Epic Games store etc. They are not vertical but benefit from having many “distributors” (HP, Dell, Acer, Razer, etc).

The latest Macbook Pros are also riddled with keyboard and other issues but for Apple it’s not a core or even the second best performing source of revenue. A number of devs have been switching to Dell machines from Mac Pros—Windows 10 is becoming great and people can always install Linux if they want.

You can be different and cool and perform poorly, like GoPro.

Both Razer and GoPro are recognisable brands operating in competitive commoditised markets (Acer, HP, Dell, etc etc all make gaming laptops). PC gaming is great but niche and USD 1800+ is a lot of money :arrow_heading_down:

Cannibalising core business for the sake of diversifying is very hard for companies known for one or two things—because management can’t throw most resources towards a new unproven thing and sacrifice core earnings.

Think Dyson and electric cars. They are back to making batteries, hair dryers and vacuum cleaners.

Very few firms, such as Apple, have been able to pull off a big pivot. IBM also sold its PC business ages ago in favour of servers, but now wants to be more AWS-like while in competition with AWS etc. No differentiation, really.

Hardware is hard.

1 Like