Qualcomm Inc (QCOM)

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Why Qualcomm (QCOM) Stock Is Trading Lower Today
By: Investing.com | September 7, 2023

What Happened: Shares of wireless chipmaker Qualcomm (NASDAQ:QCOM) fell 6.06% in the morning session after stocks of chipmakers and other suppliers of components used to make Apple (NASDAQ:AAPL) devices retreated amid recent reports suggesting China's intention to expand its prohibition of Apple device usage from government officials to state and federal agencies. For example, Qualcomm supplies some of the chips used in iPhones. This development is likely to raise concerns among investors about the potential implications of the ban on the iPhone production supply chain and future demand from China, as the extent of these restrictions remains uncertain.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Qualcomm? Find out by reading the original article on StockStory.

What is the market telling us: Qualcomm's shares are somewhat volatile and over the last year have had 12 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was about one month ago, when the stock dropped 7.59% on the news that the company reported third-quarter revenue that came in below Wall Street's expectations. Revenue guidance for the next quarter was underwhelming, although adjusted EPS guidance was more in line. Additionally, operating margin declined and inventory levels rose. We'd note that the company recorded a rare quarter of cash burn as well. On the other hand, earnings per share beat. Overall, it was a challenging quarter for the company, with underwhelming results and guidance.

Qualcomm is down 0.82% since the beginning of the year, and at $106.29 per share it is trading 23.2% below its 52-week high of $138.46 from January 2023. Investors who bought $1,000 worth of Qualcomm's shares 5 years ago would now be looking at an investment worth $1,510.

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