Top Gainers in the Tech Sector during the Week Ended May 19
In the third week of May, Chinese company Sina was the largest gainer in the tech sector—it rose 22.3%. Sina rose following good fiscal 1Q17 earnings.
Qualcomm’s (QCOM) stock price isn’t sensitive to the market’s movements. Even aggressive purchases by investors brought just a 3.8% rise in the stock’s price in ten days.
Qualcomm is looking to invest in customer engineering and marketing to bring cost-efficient technology to a larger audience and boost 4G adoption in the country.
There was increased optimism among investors in May 2017 after Qualcomm launched its Snapdragon 600 series and its Snapdragon 835 witnessed strong demand.
Qualcomm plans to focus the combined company’s technology, sales channel, and scale toward the larger growth opportunity of the connected world.
According to a research report by Morgan Stanley, Smartphone shipments to India are expected to grow at a compound annual growth rate of 23% to 192 million by 2018.
Qualcomm (QCOM) is a leader in the Smartphone market because of its wireless connectivity solutions, network infrastructure, and low-power, ARM-based Snapdragon processors.
Qualcomm (QCOM) reported strong growth in the QCT (Qualcomm CDMA Technology) segment in fiscal 2Q17.
Qualcomm continues to dominate the premium mobile processor market with its Snapdragon 800 series. However, the mobile demand trend is shifting toward mid- and low-tier phones.
Qualcomm (QCOM) is acquiring NXP Semiconductors (NXPI) to boost its chipset business, which is being hit by an overall slowdown in the Smartphone market.
Qualcomm (QCOM) is acquiring NXP Semiconductors (NXPI), which could expand the former’s exposure beyond communications and into automotive and security solutions.
Qualcomm is preparing for its biggest acquisition yet of NXP Semiconductors (NXPI) for $38 billion excluding debt. This move will change Qualcomm’s business model.
QCOM’s licensing issues are likely to continue throughout fiscal 2017, but it’s optimistic that it will overcome these headwinds as it has in the past.
In the past 12 months, Qualcomm stock has risen 6.6%, whereas the S&P 500 Index has risen 15.7%. While Qualcomm has underperformed the market, its peers have outperformed.
Licensing disputes and the RF360 (radio frequency) joint venture have increased Qualcomm’s (QCOM) current liabilities and assets.
If Qualcomm is unable to overcome the legal headwinds around its licensing business, the completion of its NXP Semiconductors acquisition could be at risk.
So far, Qualcomm’s (QCOM) licensing business hasn’t been affected by the legal cases surrounding some of its licensing agreements.
Qualcomm (QCOM) is undergoing several fines and refunds from regulators and arbitrators that could significantly affect its future cash flows.
Qualcomm’s (QCOM) revenue and profits will likely be hit in fiscal 3Q17 as the legal troubles surrounding its licensing business increase.
The fiscal second quarter is generally a strong one for Qualcomm in terms of profits, as its licensing revenue is at a seasonal high.