1 Reason to Buy Qualcomm Stock, and 1 Reason to Sell
Qualcomm (NASDAQ: QCOM) investors heaved a sigh of relief after the company beat Wall Street expectations quite comfortably during the recently reported fourth quarter. The chipmaker has been down so far in 2017, losing over 15% of its market capitalization. But the latest results seem to have given Qualcomm shares a new lease on life.
The stock was up in the post-earnings action as Qualcomm rounded off a better-than-expected quarterly performance with strong guidance numbers. The company closed the quarter with $5.9 billion in revenue, which was in line with consensus estimates. More importantly, its adjusted earnings per share of $0.92 per share was ahead of the $0.90 per share estimate that analysts were looking for.
Qualcomm investors are celebrating the strong showing of its chip business, which can deliver long-term gains as the company taps fast-growing markets outside mobile. However, investors shouldn't throw caution to the winds as the company's successes are being undermined by the alarming erosion of the royalty business. Let's take a closer look at both aspects.
Source: Fool.com
Qualcomm Inc. Stock
The stock is one of the favorites of our community with 37 Buy predictions and 1 Sell predictions.
On the other hand, the target price of 176 € is below the current price of 179.9 € for Qualcomm Inc., so the potential is actually -2.17%.
