Study of QCOM
11/08/2019 – Buy Qualcomm Stock Because Analysts Say It’s a Winner for the 5G World
Wall Street analysts are getting more optimistic over Qualcomm’s opportunities in 5G.
Late Wednesday, Qualcomm (ticker: QCOM) reported adjusted fiscal fourth-quarter earnings per share of 78 cents, above the 71 cents Wall Street had expected. Revenue of $4.8 billion was roughly in line with expectations of $4.76 billion. The chip maker’s predictions for the current quarter bracketed Wall Street’s expectations.
my lessons learned: Tepper also invested $5,705,000 Call in QCOM as of 2Q2019. I did not have time to study it before 3Q earning, and the stock jumped by 10% yesterday and 4.5% today. I should have spent sometime to study it before the earning call. Anyway, keep eyes on it. In addition, the phase one trade deal between US and China also fuels the growth of QCOM.
10/04/2019 – The Real 5G Winner Could Be China
“They sort of got a problem of how to sell 5G,” Carmack said on an August podcast. “Fundamentally, it is just a bigger pipe…It should be this relatively boring thing. They need a way to make it sexy in some way.” Virtual reality is often cited as a selling point for the technology. The problem is that VR doesn’t require all that much in the way of real-time data transfer, so it’s not an ideal use for 5G.
Amid all of the questions, chip maker Qualcomm (QCOM) sent its lead executive on 5G standards, Lorenzo Casaccia, to Barron’s offices this past week to talk about the technology’s evolution and the company’s excitement about its future.
He played down concerns as to whether 5G eventually would get the killer applications it needs to drive adoption. Before 4G, it was hard to foresee the success of Uber Technologies (UBER), Instagram, and Snapchat, he said. “I have no doubt people will figure out what to do with it. I don’t think human creativity will stop with Instagram and Snapchat,” Casaccia said. “With 5G everything is better: much better latency, higher data rates, and increased reliability.”
Multiple Wall Street analysts are getting more optimistic about China’s 5G buildout. For instance, Rosenblatt Securities notes that local governments in the Asian country are providing subsidies to “speed up 5G network deployments.” As a result, Rosenblatt says, more than 300 cities in China will have 5G networks by the end of next year. Even Hall, the Goldman Sachs 5G skeptic, expects 120 million 5G smartphones to ship next year, largely because of China’s aggressive buildout.
