What the Analysts’ Price Targets for QCOM and AVGO Tell Us
Wall Street analysts raised their consensus price target for QCOM from $60 in October 2017 to $64 in November 2017.
The semiconductor industry is undergoing a major transition, moving beyond smartphones and PCs to industrial automation and machine learning.
Broadcom climbed the ladder through acquisitions, while Qualcomm climbed the ladder through its technology advantage in the smartphone industry.
The licensing battle with Apple (AAPL) and fines from various regulators have significantly reduced Qualcomm’s (QCOM) earnings.
The combination of Broadcom (AVGO) and Qualcomm (QCOM) would likely create a company with $41 billion in annual revenues, excluding NXP Semiconductors.
Broadcom hasn’t clearly stated how it plans to solve Qualcomm’s problems.
Qualcomm’s (QCOM) legal headwinds reached its peak in 2017 when it faced fines from South Korea and Taiwan, probes from Europe, and lawsuits from Apple.
Qualcomm (QCOM) has enjoyed strong growth since the mobile revolution took off in 2007, thanks to its cellular modem technology.
The probability of AVGO making another acquisition offer for QCOM is not unlikely because its CEO has a strong record of completing complex acquisitions.
The first and the easiest thing that Broadcom could do now is talk with Qualcomm’s board and negotiate a higher price.
In just one week, Qualcomm’s board rejected Broadcom’s $70-per-share offer on the grounds that it undervalued the stock and brought regulatory uncertainty.
Qualcomm (QCOM) rejected Broadcom’s (AVGO) takeover bid, in part, because there’s uncertainty surrounding the deal getting regulatory approval.
QCOM shareholders appear to be interested in AVGO offer, though the former’s board has unanimously rejected the latter’s first acquisition bid.
When the rumor about Broadcom’s (AVGO) takeover offer started, Qualcomm’s (QCOM) stock rose ~10% to ~$65.
Qualcomm (QCOM) and Broadcom (AVGO) investors have seen a lot of surprises over the past 15 days.
Amazon reported a 59% year-over-year increase in revenues associated with its subscription video service.
Facebook’s Aquila program involves using drones to beam high-speed Internet access to the ground. Facebook recently announced the successful trial deployment of Aquila.
According to Morgan Stanley (MS) analysts, Amazon’s advertising business could generate $5.0 billion in revenues by 2018 and $7.0 billion by 2020.
Amazon was given a “buy” rating by 43 of the 47 analysts covering its stock.
In 3Q17, Amazon’s Other category revenues grew 58% YoY (year-over-year) to a little over $1.1 billion.