uploads///Qualcomm rev growth Q

Why Qualcomm Has Fallen More than 25% since May 3

By

May. 29 2019, Published 12:17 p.m. ET

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.

Article continues below advertisement

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.

Advertisement

More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.