#1 - Qualcomm (NASDAQ:QCOM)
Qualcomm (NASDAQ: QCOM) Qualcomm has a reverse David vs. Goliath problem. In an ongoing legal battle with Apple that is nearing the two-year mark (and appears headed for a protracted court battle), Qualcomm is still looking for their slingshot. In the meantime, its earnings and share price are getting hammered. In the company's fourth-quarter earnings report, they cited a $ 2 billion decline in revenue and an operating loss of $654 million. While that was somewhat expected, the future does not look much better with the company citing revenue in the next quarter to be in the range of $4.5 to $5.3 billion, well below the $5.6 billion revenue target that analysts were projecting. Another obstacle for Qualcomm is a slowdown in smartphone demand in China. As the leading provider of modems for 5G smartphones, a slowdown in sales affects their royalty revenues. Qualcomm is well-positioned in the mobile market and may come out of the battle with Apple in a better position, but in the short-term, there can be value to be found elsewhere.
About QUALCOMM
QUALCOMM Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies for use in wireless voice and data communications, networking, computing, multimedia, and position location products.
Read More - Current Price
- $163.63
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 12 Buy Ratings, 6 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $158.86 (2.9% Downside)
