Wall Street analysts were quick to draw the knives after Qorvo's (NASDAQ: QRVO) fiscal second-quarter results, reported Nov. 1, as the chipmaker continued its trend of giving weaker-than-expected guidance. Not surprisingly, the stock was subjected to ratings downgrades by at least six analyst firms.
Qorvo investors should have seen this negative sentiment coming as the company has been consistently facing challenges in the smartphone space because of intense competition from rivals. Instead, investors chose to bid up the stock, apparently in the hope of windfall gains from Apple's (NASDAQ: AAPL) new iPhones even as the chipmaker's business was declining.
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Source: Fool.com