Qualcomm stock soars and then plunges
Qualcomm (QCOM) stock soared ~50% in five sessions in April after the company’s two-year litigations with Apple were called off. This news was huge, as the lawsuit was clearly costing Qualcomm growth.
However, QCOM stock started faltering after the company announced its revenue fell 5.3% YoY (year-over-year) to $4.98 billion in fiscal 2019’s second quarter following a 20.5% YoY decline in the first quarter.
Ruling causes Qualcomm to plunge
The chip maker’s stock was jolted last week after the company was deemed to have violated an antitrust law, suppressing competition for wireless chips. The stock has fallen 26% since May 3.
Semiconductor stocks have had a tough time this month due to US-China tensions reviving. The iShares PHLX Semiconductor ETF (SOXX) has fallen 16.4%, while the tech-heavy NASDAQ Composite has fallen 6.5%.
However, Qualcomm’s stock weakness may be short lived. The company’s alliance with Apple could help shore up its finances.