Entering text into the input field will update the search result below

Rakuten: Mobile Investment Is Jeopardizing The Overall Company

Karreta Advisors profile picture
Karreta Advisors


  • Rakuten's capital allocation for its mobile business is high-risk, resulting in cash burn.
  • Management is not being disciplined enough over the pace of capital allocation and is jeopardizing the overall company.
  • Underlying fundamentals are set to weaken in our view, resulting in excess leverage. We remain sellers of the shares.
Rakuten Announces Earning Results For Q4 Of FY 2013

Chris McGrath/Getty Images News

Investment thesis

Management's high-risk approach to allocating capital to its mobile business is resulting in cash burn and a high-risk credit profile. Although we believe the market is not pricing in major positive expectations for this, the underlying fundamentals are set to

This article was written by

Karreta Advisors profile picture
We are an independent research house. We look at global stocks, favoring those with sustainable growth and recognized or emerging as a high quality franchise at suitable valuations. We primarily serve institutional investors.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (1)

What is your input on their stake in ASTS? Maybe they seem to be burning cash in that direction for a reason...

I'm not saying it's a sure fire thing. In fact it's an incredibly ambitious goal to pivot from dying legacy Japanese e-commerce into a global fintech and communications company. Billions are on the line and it's an all our nothing hail Mary.
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!


SymbolLast Price% Chg
Market Cap
Yield (TTM)
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on RKUNF

Related Stocks

SymbolLast Price% Chg
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.