69.25 +0.14 (0.20%)
After hours: 6:51PM EDT
|Bid||69.10 x 2200|
|Ask||69.09 x 900|
|Day's Range||68.90 - 69.98|
|52 Week Range||49.10 - 90.34|
|Beta (3Y Monthly)||1.59|
|PE Ratio (TTM)||36.49|
|Earnings Date||Jul 31, 2019|
|Forward Dividend & Yield||2.48 (3.71%)|
|1y Target Est||88.77|
Qualcomm (QCOM) has selected Samsung (SSNLF) to produce its next flagship chipset, the Snapdragon 865, according to Korean media reports cited by the Firstpost. The Snapdragon 865 chip is expected to come in two versions: there will be one with a 5G modem and another without.
, which last week cut its sales guidance for its current fiscal year by $2 billion due to both a Huawei parts ban and weaker demand from other clients, will see its chip sales to Apple bounce sharply next year. Analyst Ming-Chi Kuo, who has had a fairly high accuracy rate over the years when it comes to Apple product scoops, says that Apple plans to launch 5.4-inch and 6.7-inch flagship iPhones in 2020, along with a new, relatively low-cost, 6.1-inch iPhone (by comparison, the iPhone XS and XS Max have 5.8-inch and 6.5-inch displays, respectively).
A federal judge in California last month ruled that Qualcomm’s business practices stifled competition and ordered the company to change its business model. Qualcomm is expected to appeal the ruling. In the meantime, the company wants the ruling set aside until its appeal is heard.
The Trump administration has ordered American companies not to do business with Huawei, claiming the Chinese company represents a threat to national security.
Major U.S. chip makers, including Intel Corp. , Qualcomm Inc. and Xilinx Inc. , have quietly lobbied the Trump administration to ease its ban on sales to Chinese tech giant Huawei Technologies Co., Reuters reported Sunday. One source told Reuters that the aim was not to help Huawei, but to prevent harm to U.S. companies. Reuters said Huawei spent about $11 billion buying components from U.S. companies in 2018. The Trump administration announced the ban in May, after trade negotiations between the U.S. and China stalled. Earlier this month, the acting White House budget chief sought to delay implementation of the ban, the Wall Street Journal reported, arguing that the burden would fall on U.S. companies that did business with Huawei.
SAN FRANCISCO/WASHINGTON (Reuters) - Huawei's American chip suppliers, including Qualcomm and Intel, are quietly pressing the U.S. government to ease its ban on sales to the Chinese tech giant, even as Huawei itself avoids typical government lobbying, people familiar with the situation said. Executives from top U.S. chipmakers Intel and Xilinx Inc attended a meeting in late May with the Commerce Department to discuss a response to Huawei's placement on the black list, one person said. The ban bars U.S. suppliers from selling to Huawei, the world's largest telecommunications equipment company, without special approval, because of what the government said were national security issues.
After Broadcom cut its forecast sparking a chip stock selloff, one analyst warns that things might get worse.
(Bloomberg) -- As Huawei Technologies Co. comes under unrelenting pressure from the Trump administration, the Chinese telecom giant has one advantage that the U.S. can’t undermine: a vast, global portfolio of patents on critical technology.Huawei holds 56,492 active patents on telecommunications, networking and other high-tech inventions worldwide, according to Anaqua’s AcclaimIP. And it’s stepping up pursuit of royalties and licensing fees as its access to American markets and suppliers is being restricted.The company is in protracted licensing talks with phone-services provider Verizon Communications Inc. and is in a dispute with chipmaker Qualcomm Inc. over the value of patents. Huawei also lodged claims against Harris Corp. after the defense contractor sued it last year alleging infringement of patents for networking and cloud security.“Patents are, at their basic level, weapons of economic warfare,” said Brad Hulbert, a patent lawyer with McDonnell Boehnen Hulbert & Berghoff in Chicago. “They’re being hurt by the sanctions that the Trump Administration imposed and saying ‘You have hurt us and our ability to sell, and we can hurt back.’ It’s saber-rattling.”Broader national security concerns also hang over this technology battle. In some circles Huawei’s outsized role as a supplier to next generation, or 5G networks makes it a potential threat either as an espionage agent or network disruption tool. Huawei has not only become a flashpoint in the middle of a 5G arms race, it’s also one of several companies targeted in President Donald Trump’s ongoing trade dispute with China.Trump signed an order in May that’s expected to restrict Huawei from selling equipment in the U.S. Shortly after, the Department of Commerce said it had put Huawei on a blacklist that could forbid it from doing business with American companies.For its part, the Asian nation sees Huawei as a potent symbol of its evolution from the world’s factory to a technology powerhouse, while the U.S. claims the tech company steals inventions from American firms.“Huawei has invested a lot of money and they want to be recognized,” said Jim McGregor, a Mesa, Arizona-based technology analyst with Tirias Research. “Huawei is just playing out standard business practices for the wireless industry.”Patent disputes are common in the tech industry, and the coming revolution predicted by advances in “5G” wireless technology promises to bring even more. Traditional players like Ericsson AB and Nokia Oyj are ramping up efforts to get more money from their patents. Qualcomm is appealing a ruling in a lawsuit by the U.S. Federal Trade Commission that threatens the licensing program that accounts for the bulk of its profits. Huawei and Samsung Electronics Co. ended a two-year royalty fight in February.Qualcomm and Huawei are seen as two of the biggest players developing 5G that could bring not only faster speeds but bring new capabilities including remote surgery via robots and self-driving cars that talk to each other. The global ban on Huawei equipment promoted by Trump has roiled telecom companies worldwide. It’s a reminder, McGregor said, that 5G relies on both the U.S. and China.“Huawei, over the past couple of years, has really ramped up its efforts in not only patents but in the standard bodies, particularly in wireless technology,” McGregor said. “They can say ‘whether you’re using our equipment or Ericsson’s equipment, you’re using our inventions. You still have to take a license.’”The Chinese government and companies have been investing billions in high-tech research, and have the patents to show for it. Last year alone, Huawei received 1,680 U.S. patents, making it the 16th biggest recipient, figures by Fairview Research’s IFI Patent Claims Services show. Huawei’s total portfolio of active patents and published applications is 102,911, according to Anaqua, an intellectual property-management software firm.Royalty demands against cell-phone carrier Verizon by Huawei, reported Wednesday by the Wall Street Journal, could be become part of the political battle, said Peter Toren, a Washington-based patent lawyer who consults with other firms and companies on licensing and litigation.“Given Huawei’s position and the pressure they are feeling, they have nothing to lose at this point than to go after American companies in the patent arena,” Toren said. “They get poked in one area and they’re going to stick back in another to show there are consequences for this continued pressure.“I don’t see how the government can stop them,” he said. “They have ownership in the patents.”Verizon, while declining to comment on specific talks, sees the negotiations as more than just a typical patent-licensing discussion.“These issues are larger than just Verizon,” the company said in a statement. “Given the broader geopolitical context, any issue involving Huawei has implications for our entire industry and also raise national and international concerns.”Officials with Huawei had no immediate comment.McGregor said it makes sense for Huawei to demand royalties from Verizon because it’s the largest cell-phone carrier in the U.S. Verizon claims it’s the first to offer speedy new 5G services for mobile phones, though it’s only available in a limited area.“If they don’t go to them within a reasonable amount of time and at least try to enforce those patents, those patents become unenforceable,” McGregor said. “You have to pick a starting point. It’s better to pick one of the major players and it makes sense to pick one of those who’s rolling out that technology.”\--With assistance from Ian King and Scott Moritz.To contact the reporter on this story: Susan Decker in Washington at email@example.comTo contact the editors responsible for this story: Jon Morgan at firstname.lastname@example.org, Elizabeth WassermanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Investing.com - The S&P; 500 closed flat on Friday as firmer retail sales pointing to underlying strength in the U.S. economy were countered by a slump in chip stocks, led by Broadcom.
Investing.com - Broadcom fell sharply Friday, sending chip stocks lower after the company delivered an ominous outlook and reported revenue that fell short of estimates.
Admittedly, Wall Street analysts aren't perfect, or even close. They can be too optimistic, as witnessed by just how rare it is that an analyst will assign a sell rating to a stock. Like the rest of us, they can succumb to a herd mentality. Stepping out of line is discouraged (and offers little incentive). As a result, the Street sometimes seems to move its targets as much due to price action as due to fundamental changes.But although Wall Street sentiment isn't gospel, it still has value. Analysts can still move stocks with an upgrade … or a downgrade. Few market participants understand the stocks better, and the industries, they cover. And in extreme cases, analyst expectations can signal value the rest of the market might be missing.For these 10 stocks, the divergence between the market price and the trading price is extreme: at least 25%. And for all 10 stocks, there's some logic behind the analyst arguments. These aren't the 10 stocks with the biggest divergences (many small-cap stocks have average target prices that suggest a double, albeit with limited coverage) and they're not guaranteed to rise. But, in all ten cases, there's at least good reason to think that Wall Street might be right.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks That Every 30-Year-Old Should Buy and Hold Forever (Author's note: average target price data comes from finviz.com. Upside based on closing prices on Monday, June 10, 2019.) Facebook (FB)Source: Shutterstock Average Target Price: +27%Wall Street still likes Facebook (NASDAQ:FB). Among the 35 largest stocks by market capitalization, only Alibaba (NYSE:BABA) has larger upside based on the average Wall Street target price.That said, analysts generally like the so-called FAANG stocks as a group. The Street sees 26% gains ahead for Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), and 20% upside for Amazon (NASDAQ:AMZN). Average target prices imply that Apple (NASDAQ:AAPL) will rise 14%, and Netflix (NASDAQ:NFLX) 7%.Still, Facebook is the Street's best pick in the group, at least at the moment -- and that makes sense. For all the noise about the company's myriad scandals, its users haven't gone anywhere. Larry Ramer raised caution about the pending Federal Trade Commission investigation, but I respectfully disagree, given Facebook has zero liability under existing antitrust laws. As I wrote last month, there's still a case for Facebook to reclaim all-time highs, and the average analyst agrees. The target price of $221 is just above July 2018 highs near $219.To be sure, FB stock likely needs some help from the broader market and the economy to keep driving ad sales. But there is plenty of room from a valuation standpoint for FB to rally, and it likely wouldn't take much of a catalyst for Wall Street to start pounding the table for the stock again. Baidu (BIDU)Source: Shutterstock Average Target Price: +87%At the moment, the Street sees Baidu (NASDAQ:BIDU) nearly doubling, but that may not be the case for long. BIDU shares tumbled after a disappointing Q1 earnings report last month, dropping over 25% before a recent, modest, rally. It's likely that some analysts haven't yet updated their price targets, and that some of those targets may come down with BIDU closer to $100 than the current $209 average target price.It's also worth noting that analysts are generally much more bullish on Chinese stocks than the market. As noted, analysts see 28% upside in Alibaba stock, over 50% in oil plays PetroChina (NYSE:PTR) and China Petroleum & Chemical (NYSE:SNP), and 60%+ gains for Weibo (NASDAQ:WB). China-focused analysts might be less connected to U.S. investor sentiment and maybe more likely to keep targets elevated to curry favor with company executives less open to dissent than their American counterparts. * 7 U.S. Stocks to Buy With Limited Trade War Exposure Still, even with those caveats, Wall Street clearly sees the fall in BIDU shares as overdone. There are risks here, as I wrote after the Q1 report. But as Barron's reported, analysts see better days coming in the second half of this year. At less than 15x earnings, BIDU looks cheap, meaning few improvements are actually priced in. If Wall Street is right about performance, Baidu stock has a big move ahead, even if it falls short of current price targets. Bausch Health (BHC)Source: Wikimedia (Modified)Average Target Price: +44%Investors would be forgiven for having some skepticism toward analyst opinions on Bausch Health (NYSE:BHC). Wall Street was caught notably flat-footed when Bausch, then known as Valeant Pharmaceuticals, saw its share price collapse back in 2015. And it's worth remembering that Bausch still has nearly $25 billion in debt and a market cap under $8 billion. It doesn't take much of a tweak to models to notably change the value of BHC stock.That said, Wall Street no doubt is a bit chastened by its prior analyses of BHC. ("Fool me once, shame on you; fool me twice, shame on me.") Meanwhile, Bausch posted its best organic growth in three years in the first quarter, and raised full-year guidance in the process.There are still risks here, and I've been cautious toward BHC since the Valeant days. But Bausch has made significant improvement in recent years … yet BHC stock has traded sideways for a good eighteen months. If Wall Street is right this time, the stock should be due for a rally. Qualcomm (QCOM)Source: Shutterstock Average Target Price: +37%Shares of Qualcomm (NASDAQ:QCOM) soared after its April settlement with Apple, and analysts jumped on board quickly as well. Morgan Stanley (NYSE:MS), for instance, raised QCOM stock to a Buy rating and hiked its target all the way from $55 to $95. Three other analysts immediately upgraded the stock.Morgan Stanley, in fact, very nearly got it exactly right. QCOM went from $57 before the announcement to $90 by early May. Since then, however, the stock has come in. As Dana Blankenhorn noted, fiscal Q2 results in early May seemed underwhelming given the optimism toward the stock. Generally negative sentiment toward chip stocks hasn't helped, either. QCOM went back to $65 before climbing in recent sessions to $70.But so far at least, analysts haven't budged off their optimism. They still see QCOM rising to $96. As James Brumley detailed recently, there's a strong case that Qualcomm stock can get there. 5G optimism (and potentially U.S. government support) and the company's significant intellectual property holdings underpin that bull case. * 7 High-Quality Cheap Stocks to Buy With $10 Of late, it looks like investors see the sell-off as overdone, but that won't be enough. The market will need to agree with analysts that the Apple deal was as transformative long-term as Wall Street seemed, and still seems, to believe. If that comes to pass, QCOM should return to those April highs. International Game Technology (IGT)Source: Charrua NYC via YouTube (Modified)Average Target Price: +64%I've long thought gaming analysts were one of the better groups on the Street, and one of their top picks is integrated gaming supplier International Game Technology (NYSE:IGT). Given that I personally own IGT shares, I'm inclined to agree.There are some risks here that have hit IGT shares lately. Notably, the company still has extensive exposure to Italy, where it runs both lottery and gaming options, and there are increasing fears that country could leave the E.U. or find further ways to squeeze out more money to fund its ongoing deficits. Debt is still significant. Q1 results were somewhat mixed, keeping intact IGT's reputation for inconsistent performance. And outside of Italy, IGT still is dependent on economically sensitive casinos at a time when global macro worries clearly are mounting.Meanwhile, sector analysts look relatively optimistic across the board. Fellow integrated supplier Scientific Games (NASDAQ:SGMS) would need to rise roughly 50% to hit Wall Street's average target. Analysts see big upside in U.S. names like Boyd Gaming (NYSE:BYD) and Penn National Gaming (NASDAQ:PENN). Even Macau-focused names like Wynn Resorts (NASDAQ:WYNN) and Las Vegas Sands (NYSE:LVS), whose bulls have sometimes criticized the Street for being overly cautious toward that volatile market, generally see outperform and buy ratings.All that said, IGT still looks intriguing here. It's cheaper than other suppliers. Its long-struggling slot business in the U.S. is showing signs of life. The Italian business is locked in through the middle of the next decade. Upfront payments required to secure the contract are done, meaning the company should drive impressive free cash flow in the coming years. A 6%+ dividend yield helps the case as well.Given the amount of debt used in the industry, and just how quickly fortunes can turn in a recession, gaming analysts usually are well aware of risk. In the case of IGT, they know the risks but still see upside, something investors should keep in mind. Splunk (SPLK)Source: Web Summit Via FlickrAverage Target Price: +28%The upside that Wall Street sees in software data play Splunk (NASDAQ:SPLK) isn't that impressive on its face; 28% returns are nothing to sneeze at, of course. But many SaaS (software-as-a-service) stocks have done better in recent years, and there is no shortage of stocks that analysts seem to like better than SPLK.But what's interesting about SPLK is that its trading relative to the Street has been much different than that of many other dearly valued, high-growth software plays. Workday (NYSE:WDAY), Shopify (NYSE:SHOP), Zoom Video Communications (NASDAQ:ZM) and Paycom Software (NYSE:PAYC) all trade above Wall Street targets. This has been a category where analysts usually have been playing catch-up, trying to match targets to steadily increasing valuations.Yet SPLK largely has been left out of late: the stock is up just 3.4% over the past year. And that might set up an interesting opportunity, either as a trade or an investment. Splunk stock isn't cheap, but its growth remains impressive. It's coming off a nice first-quarter beat that still wasn't quite enough to impress investors. * 7 A-Rated Stocks to Buy Under $10 Investors have looked to SaaS stocks as a way to buy growth at almost any price. But with valuation concerns now rising for stocks like SHOP and ZM, SPLK may be seen as a way to get exposure to big growth at a relative discount. Certainly, more than a few analysts see it that way. If other plays in the sector keep rising, and that sentiment finds its way back to Splunk stock, analysts might again have to play catch-up with SPLK. Diamondback Energy (FANG)Source: Shutterstock Average Target Price: +58%To be sure, investors in oil and gas stocks like Diamondback Energy (NASDAQ:FANG) need to take analyst targets with a grain of salt. There are literally dozens of O&G plays where analysts see huge upside.Here, too, analysts may be a bit late in updating models, particularly after the recent pullback in crude oil prices. But this is a space where, for small- and mid-cap stocks in particular, analyst targets can suggest 100%+ upside. (At the moment, that's true for Encana (NYSE:ECA), Bonanza Creek (NYSE:BCEI), and Callon Petroleum (NYSE:CPE), to name just three.)Still, as far as larger producers go, Diamondback and Concho Resources (NYSE:CXO) look to be the top picks. And that sentiment improved just a few weeks ago amid the bidding war for Anadarko Petroleum (NYSE:APC) between Chevron (NYSE:CVX) and Occidental Petroleum (NYSE:OXY).Falling crude prices have dimmed enthusiasm somewhat, but as I wrote last week, there's still a strong case that Diamondback could be a takeover target for one of the major oil players. Results have been strong lately, with a cheap valuation (8x forward earnings) supporting the case for FANG on its own. Oil analysts might look a little too optimistic toward the industry as a whole, but I think they've got it right when it comes to FANG. Tesla (TSLA)Source: Tesla Average Target Price: +33%More than a few analysts have turned bearish on Tesla (NASDAQ:TSLA) of late. Most notably, in May, two different firms released bear-case fair value estimates of $10 and $36, respectively.While I'm not quite that pessimistic toward Tesla, I continue to agree more broadly with those analysts. I still think, as I wrote last week, that Tesla stock is sharply overvalued. Execution and strategy have been subpar under CEO Elon Musk, who clearly has lost the trust of more than a few investors.But for both bulls and bears, it's important to remember that Wall Street on the whole still has a bullish take on TSLA stock. The average target price sits at $283, even with a few headline-grabbing reductions in recent weeks. Only seven of 23 analysts rate TSLA a sell or an underperform.Whether Street support is good news for TSLA stock is up for debate. The fact that many analysts see upside in the stock raises the risk of another earnings miss with the second-quarter report, likely coming in late July. More downgrades and target price cuts could restart the pressure on the TSLA stock price. * 7 U.S. Stocks to Buy With Limited Trade War Exposure But the fact that analysts -- nearly all of whom have extensive experience in the auto industry -- still back the stock might be proof that the story isn't as simple as bears make it out to be. There's still a bull case for Tesla stock, which means, as we've seen in recent sessions, that there are still potential buyers out there. Palo Alto Networks (PANW)Source: Shutterstock Average Target Price: +41%Cybersecurity leader Palo Alto Networks (NYSE:PANW) reported second-quarter earnings in late February, and handily beat analyst estimates. PANW stock climbed to an all-time high the next day.But I wrote at the time that the headline numbers hid potential risks and those risks have come to pass. Q4 guidance along with earnings at the end of last month disappointed. Valuation had become stretched, and has come in. PANW stock has dropped some 24% from those highs.And with the pullback, PANW does look more intriguing. It's still one of the more attractive plays on what should be a growing cybersecurity space. It trades below 30x FY20 earnings-per-share consensus backing out its net cash. Luke Lango called PANW a "steal" below $200, and analysts appear to agree. The average price target suggests strong upside, even if some analysts may be looking to update their models following third-quarter numbers.To be sure, there are still some modest concerns about the space on the whole. But PANW looks like it's putting in a bottom, and a modest change in sentiment could lead to a nice rebound from current levels. Allergan (AGN)Source: Everjean via FlickrAverage Target Price: +41%At the end of May, shares of Allergan (NYSE:AGN) touched their lowest levels in almost six years. And there are worries here, and risks of further decline. Cash cow Botox faces potential competition from Revance Therapeutics (NASDAQ:RVNC). The 2017 acquisition of Zeltiq Aesthetics has turned out to be a significant miss, as revenue from that company's CoolSculpting has stalled out. Meanwhile, broader questions about the company's pipeline persist.But Wall Street, at least, sees the selloff as overdone. The lowest of 19 price targets for AGN still suggest double-digit total returns, including the company's 2.3% dividend yield. And analysts might be right here. AGN stock is awfully cheap, at less than 8x 2019 EPS estimates. Debt is worth noting, but still manageable. The company's Vraylar just won Food and Drug Administration approval to treat bipolar depression. * 7 High-Quality Cheap Stocks to Buy With $10 The concerns here are real, to be sure. But AGN still has a diversified portfolio, it still has potential in aesthetics and now it looks awfully cheap. Wall Street knows the problems facing the company as well as anyone, yet they're still on Allergan's side. Perhaps investors should be as well, particularly near the lows.As of this writing, Vince Martin is long shares of International Game Technology, and has a bearish hedged options position in Tesla. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Quality Cheap Stocks to Buy With $10 * 7 U.S. Stocks to Buy With Limited Trade War Exposure * 6 Growth Stocks That Could Be the Next Big Thing Compare Brokers The post 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 appeared first on InvestorPlace.
CyberArk (CYBR) and CNA's new program will educate companies on the types of security gaps and possible threats along with providing additional privileged access-related services to policyholders.
Online pet-products retailer Chewy is expected to price its IPO, and chipmaker Broadcom will report earnings Thursday.
Leading the Apple (NASDAQ:AAPL) rumor mill today is news about the next-gen iPhone XR. Today, we'll look at that and other Apple Rumors for Wednesday.iPhone XR: A new rumor claims that Apple will be making upgrades to the next version of the iPhone XR, reports MacRumors. According to this rumor, the tech company is planning to increase the battery size for the smartphone. This rumor claims that AAPL the next-gen iPhone XR's battery will come in at 3,110 mAh. This represents a roughly 6% increase over the current 2,942 mAh battery in the iPhone XR.iOS 13 NFC: AAPL changing NFC restrictions means changes for Japan, 9to5Mac notes. The introduction of iOS 13 will allow the smartphones to scan the NFC chips that are in ID cards in Japan. That feature will let iPhone owners in the country backup their information in the device. This will work with the government app for these ID cards.InvestorPlace - Stock Market News, Stock Advice & Trading TipsModem Acquisition: Apple may be looking to beef up its modem development with an acquisition, reports AppleInsider. Recent reports claim that the tech company is in talks with Intel (NASDAQ:INTC) to acquire a piece of its modem division. This could allow AAPL to create its own modems and not have to rely off of Qualcomm (NASDAQ:QCOM) in the future. INTC was originally working on modems for AAPL before the company settled its lawsuits with QCOM.Check out more recent Apple Rumors or Subscribe to Apple Rumors : RSS As of this writing, William White did not hold a position in any of the aforementioned securities. Compare Brokers The post Wednesday Apple Rumors: iPhone XR Successor May Sport Larger Battery appeared first on InvestorPlace.
Rival proposals for European patent guidelines covering technology vital for building self-driving cars and internet-linked vehicles have set tech firms and carmakers on a collision course. The differences between firms such as Qualcomm and Nokia and vehicle manufacturers like BMW and Daimler over patent terms raises the prospect of legal challenges and antitrust suits, which have emerged in other industries that depend on access to technology. In May, a U.S. court told Qualcomm to overhaul its business practices for illegally suppressing competition in the smartphone chip market by threatening to cut off supplies and extracting excessive licensing fees.
Qualcomm news concerning antitrust complaints has QCOM stock down on Wednesday.Source: Shutterstock The case against Qualcomm (NASDAQ:QCOM) comes from U.S. District Judge Lucy Koh. A ruling was made on May 21 that requires the company to take part in new antitrust operations. QCOM is seeking to appeal this ruling.The bad Qualcomm news comes from the company's request to delay that ruling until it finishes its appeal. The judge isn't planning to change the ruling, arguing that the appeal could take years to process.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAnother added bit of bad Qualcomm news comes from LG. The company says that it is currently in negotiations with QCOM over using the company's chips in its smartphones. It has voiced concerns that a reversal on the judge's decision could result in it having to take an unfair deal in the negotiations.It isn't just Judge Koh and LG that want the current ruling to remain in place. The U.S. Federal Trade Commission is also in favor of keeping the current ruling in connection to QCOM, reports Reuters. * 7 Stocks to Buy for the Coming Recession LG is also far from the only smartphone maker that has made complaints about how Qualcomm handles licensing fees for its patents. Apple (NASDAQ:AAPL) was also battling the company in a series of lawsuits lasting for years. However the two recently reached a settlement agreement that has brought that fight to an end.QCOM stock was down 2% as of Wednesday morning. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for the Coming Recession * 10 Smart Dividend Stocks for the Rest of the Year * 5 Tech Stocks That Are Far Too Risky Right Now As of this writing, William White did not hold a position in any of the aforementioned securities.Compare Brokers The post Qualcomm News: Why QCOM Stock Is Down Today appeared first on InvestorPlace.
Before Qualcomm (NASDAQ:QCOM) reached a settlement with Apple (NASDAQ:AAPL) over their long-simmering royalty dispute in mid-April, owners of QCOM stock would likely have been delighted if it hit $70. Source: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, once the news got out that Qualcomm would get at least $4.5 billion from Apple as part of its settlement, QCOM stock had nowhere to go but up, jumping 59% over 12 days of trading, to a 52-week high of $90.34. It was at that point that Qualcomm shareholders started to dream about joining the triple-digit club.And then U.S. District Judge Lucy Koh ruled May 22 that Qualcomm violated antitrust laws by extracting higher patent license fees from smartphone makers. That sent its stock 15% lower over the next five days of trading.Which begs the question: Is QCOM a $60 stock or an $80 stock? It's a $60 StockThe argument that Qualcomm is a $60 stock begins with a look back at its history. * 7 Stocks to Buy for the Coming Recession Since going public in December 1991, Qualcomm has traded above $80 for a reasonable amount of time on just three occasions: December 1999, May 2014 and April 2019. That's three times in 25 years. In contrast, QCOM stock traded below $60 for 11.5 years between May 2000 and January 2012. Between January 2012 and today, it's spent most of the time trading down to $50 and up to $70, making $60 a common resting place. While most analysts are positive about Qualcomm's future, the ruling against the company hurts its future earnings from patent fees and royalties."This is a gut punch to Qualcomm and could have a major ripple impact across the smartphone industry," said Daniel Ives, managing director at Wedbush Securities on May 22. "It could not come at a worse time for Qualcomm going into 5G and its pricing power on chips."If the ruling stands on appeal to the U.S. 9th Circuit Court of Appeals, Qualcomm would be required to use component-level licensing, which would reduce the amount it could make off smartphone-makers like Apple. As a result, while the judge's decision does little to affect Qualcomm in the near-term, the stock's long-term attractiveness isn't nearly as bright. It's an $80 StockAs I said in the previous section, analysts are primarily supportive of QCOM stock. Currently, 26 analysts have a rating on Qualcomm with 16 calling it a "buy" and 10 a "hold". As for earnings and price targets, the average analyst has a fiscal 2020 earnings-per-share estimate of $5.26; as for its 12-month price target, the high estimate is $115, the low is $65, and the average is $89, an upside of 27% as of June 7Based on $5.26 in 2020 earnings, its stock is trading around 13 times those earnings. Over the past five years, Qualcomm's P/E has averaged 19 -- not once has it traded below 15 times earnings over the past decade. Despite this little setback in the courts, QCOM stock is looking very inexpensive.That's especially true when you consider that QCOM stock is currently yielding 3.5%, generating more than $3 billion in free cash flow and debt is a reasonable 18% of its market cap. The Verdict on QCOM StockIf you take Qualcomm's trailing 12-month free cash flow of $2.1 billion and enterprise value of $91.8 billion, you get a free cash flow yield of 3.3%. By comparison, Apple's current free cash flow yield is 6.5%, with a dividend yield of 1.6%.For income investors, settling for Apple and half the yield might be too hard to swallow. * 10 High-Tech Gifts for Father's Day 2019 Also, Qualcomm supplies 50% of the global smartphone market. An investment in QCOM means you've got a good shot of winning no matter who the dominant smartphone player is. However, with Apple, you've got to hope that it retains its lead to keep winning.For this reason, I believe that QCOM is an $80 stock despite faltering on several occasions over the past five years. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for the Coming Recession * 10 Smart Dividend Stocks for the Rest of the Year * 5 Tech Stocks That Are Far Too Risky Right Now Compare Brokers The post Is Qualcomm Stock Worth $60 or $80? appeared first on InvestorPlace.
Qualcomm (NASDAQ:QCOM) was dealt a huge blow on May 21, when a U.S. District Court Judge sided with the Federal Trade Commission and ruled the company had violated antitrust laws. QCOM stock tanked as investors absorbed the prospect of Qualcomm seeing its patent royalties reduced to pennies just as business was ramping up in the race to 5G smartphones. However, since May 28 when QCOM filed a motion to stay the ruling while it appeals, the stock has been steadily gaining ground.Source: Shutterstock That trend has come to an end. Yesterday, both LG Electronics and the FTC filed motions in federal court, opposing QCOM's request for business as usual while it prepares an appeal. As a result, QCOM stock is down 1.5% at the time of this writing. Qualcomm Stock Hit By Latest FTC FilingThe prospect of being forced to adopt FRAND (fair, reasonable and non-discriminatory) terms for its smartphone modem-related technology patents would be a huge blow to Qualcomm's revenue -- and to Qualcomm stock. But that was the outcome of the FTC's antitrust suit against Qualcomm. The Judge ruled that Qualcomm's business model of collecting licensing fees from all smartphone manufacturers -- regardless of whose cellular modem is in their product -- was anticompetitive.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Smart Dividend Stocks for the Rest of the Year The ruling that QCOM would have to license the technology under a FRAND model meant the fees it collects from manufacturers would be slashed. In the company's recent battle with Apple (NASDAQ:AAPL), the iPhone maker was fighting against paying a licensing fee of $7.50 per phone (on top of the $30 modem), instead of the $1.50 it had been holding out for. Under FRAND, the terms would likely be even lower than what Apple was pushing for. Qualcomm stock dropped like a rock after that ruling on May 21.On May 28, Qualcomm filed a motion asking the judge to stay the ruling, while it files an appeal. That news kicked off two weeks of slow but steady gains for Qualcomm stock because if granted, the stay meant business as usual until the formal appeal is filed and heard. And that could take several years.Yesterday, both the FTC and LG filed motions in federal court aimed at blocking Qualcomm's request for a stay. LG noted in its filing that it is currently in negotiations with QCOM to renew a modem license that expires on June 30, adding urgency to the issue. The company says QCOM is pushing hard to ink a deal under the current monopolistic terms, aiming to lock LG into an expensive contract. QCOM stock has been down in pre-market trading, with investors worried about the prospect that this countermove could result in Qualcomm's stay being denied -- and the company's licensing revenue being decimated by the immediate adoption of FRAND terms. QCOM Stock's Short-Lived ResurgenceWhen Qualcomm won its years-long legal battle with Apple in April, QCOM stock was on fire. Apple would surrender the licensing fees it had been withholding during the court case. Qualcomm's revenue would be boosted by the licensing fee per iPhone Apple would now be paying under the new agreement. The icing on the cake? After dumping Qualcomm modems in favor of Intel (NASDAQ:INTC), Apple would go back to QCOM, and even in this era of stalling iPhone sales, that means another 40 million or more units per month, at $30 or so a pop. * 7 Dividend Stocks That Are Worth Your Money As a result of that ruling, QCOM stock shot up 23% on the first day, eventually peaking at $89.29 in early May, a five-year high for QCOM.Unfortunately for anyone who bought Qualcomm stock immediately after that win, the company's challenges extend far beyond just Apple. The reaction of QCOM stock to the latest motion from the FTC shows just how much is riding on the final outcome of its antitrust case, and how important even the lead-up to the appeal will be for Qualcomm. The result of the latest FTC motion could mean the difference between several more years of current-level licensing revenue for Qualcomm during the appeal process, or an immediate imposition of FRAND terms.As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for the Coming Recession * 10 Smart Dividend Stocks for the Rest of the Year * 5 Tech Stocks That Are Far Too Risky Right Now Compare Brokers The post Qualcomm Stock Hammered Amid Continued FTC-Related Woes appeared first on InvestorPlace.
NXP shares have underperformed the Philadelphia Semiconductor Index by 102 percent and peers by 73 percent in the last three years, Hettenbach said in the Wednesday upgrade note. Notwithstanding the ongoing risks in the semiconductor cycle into the second half, Hettenbach said a number of company-specific elements — leaner distribution, levers to pull on margins and relative valuation after a period of significant underpeformance —make him constructive on NXP. Given the semicycle risk, Hettenbach said he would recommend an opportunistic approach when adding to positions in NXP.