Qualcomm (QCOM) Stock Trades Down, Here Is Why

Radek Strnad /
2023/05/04 9:52 am EDT

What Happened:

Shares of wireless chipmaker Qualcomm (NASDAQ:QCOM) fell 5.34% in the afternoon session after the company reported second-quarter results that beat analysts' revenue estimates. Inventory levels also improved. However, earnings per share missed. In addition, revenue and EPS guidance for the next quarter fell short of Consensus estimates. Management added that the company continues to see the impact of several factors on the business, including "macroeconomic headwinds, weaker global handset units, and channel inventory drawdown." It was a mixed but overall weak quarter for the company, and management commentary regarding the macro means near-term uncertainty for the company.

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.

Qualcomm is down 1.67% since the beginning of the year, and at $105.18 per share it is trading 32.5% below its 52-week high of $155.86 from July 2022. Investors who bought $1,000 worth of Qualcomm's shares 5 years ago would now be looking at an investment worth $2,010.

Is now the time to buy Qualcomm? Access our full analysis of the earnings results here, it's free.