Qualcomm Inc (QCOM)

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Qualcomm's stock sinks after short-seller takes aim
By: MarketWatch | January 23, 2019

Shares of Qualcomm Inc. QCOM, -4.29% sank 3.0% toward an 8 1/2-month low in morning trade Wednesday, after short-seller Kerrisdale Capital took aim at the semiconductor maker, suggesting a downside of about 60% from current levels. Kerrisdale said its believes the Federal Trade Commission will win its case against Qualcomm, which would force Qualcomm to license its key cellular patents to potential competitors, such as Intel Corp. INTC, -0.81% on "fair, reasonable and non-discriminatory" (FRAND) terms, which Qualcomm had indicated in the past would destroy its licensing business. Assuming an FTC victory, Kerrisdale said the financial impact would imply a share price of $21.31, or 59.6% below current levels. The stock has shed 21% over the past three months while the PHLX Semiconductor Index SOX, -1.08% has slipped 2.1% and the S&P 500 SPX, -0.30% has edged 3.3% lower.

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