Qualcomm's most recent trend suggests a bullish bias. One trading opportunity on Qualcomm is a Bull Put Spread using a strike $75.00 short put and a strike $70.00 long put offers a potential 15.21% return on risk over the next 9 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $75.00 by expiration. The full premium credit of $0.66 would be kept by the premium seller. The risk of $4.34 would be incurred if the stock dropped below the $70.00 long put strike price.
The 5-day moving average is moving up which suggests that the short-term momentum for Qualcomm is bullish and the probability of a rise in share price is higher if the stock starts trending.
The 20-day moving average is moving up which suggests that the medium-term momentum for Qualcomm is bullish.
The RSI indicator is above 80 which suggests that the stock is in overbought territory.
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LATEST NEWS for Qualcomm
Qualcomm asks appeals court to pause antitrust ruling's impact
Tue, 09 Jul 2019 05:21:11 +0000
The filing with the 9th U.S. Circuit Court of Appeals came after U.S. District Judge Lucy Koh last week declined to put on hold her own ruling in a case brought by the U.S. Federal Trade Commission against the San Diego company, which is the largest supplier of modem chips that connect smartphones to wireless data networks. Koh ruled that Qualcomm had engaged in anticompetitive patent-licensing practices to keep a monopoly on the mobile chip market. Koh ordered Qualcomm to license its technology to rival chipmakers, which include firms like Taiwan's MediaTek Inc. Qualcomm has been fighting to have the ruling put on hold while it pursues an appeal, which could take more than year.
What’s Next in the US-China Trade War Saga?
Mon, 08 Jul 2019 17:42:33 +0000
Reportedly, the trade deal between the United States and China is 90% complete.
Can the Rally of Micron Stock Last?
Mon, 08 Jul 2019 16:59:23 +0000
The stock price of Micron (NASDAQ:MU) is prone to sudden explosive moves. Just look at the past month. During this period, Micron stock swung from $35.20 to its current price of close to $40.50.Source: Shutterstock The main reason for this, of course, is the lessening of tension between the U.S. and China on trade. There was, for example, a truce on tariffs as well as a backing off on the severe restrictions on Huawei, which is a huge buyer of U.S. technology. All this sparked a rally in the chip sector, boosting stocks of companies like Qualcomm (NASDAQ:QCOM) and Intel (NASDAQ:INTC).But for MU stock, the thawing of the trade war was particularly important. Keep in mind that a majority of its sales come from China.InvestorPlace – Stock Market News, Stock Advice & Trading TipsYet MU's quarterly announcement also boosted MU stock. Its earnings per share came in at $1.05, which beat analysts' average estimate by 27 cents. MU's top line beat expectations by about $100 million. * 7 A-Rated Stocks to Buy for the Rest of 2019 So all in all, the bull move of MU stock is based on encouraging fundamentals. But the big question is: Can the rally of Micron stock continue?Well, I'd be cautious on MU. First of all, it's important to note that – before the strong move of MU stock – sentiment towards MU was downright awful. In other words, any kind of good news would have likely sparked an acceleration of buying.Next, after drilling down further on the earnings report, it's clear that MU still has some nagging issues. During the quarter, its profit fell about 67% from the same period last year. There was also a grueling 38.6% plunge in its revenues to $4.79 billion.Unfortunately, it looks like these large declines will not be temporary. For the fiscal fourth quarter, MU expects its revenues to range from $4.3 billion to $4.7 billion, while the average estimate was for $4.9 billion. As for earnings per share, the company's estimate is for 38 cents to 52 cents a share. Analysts, on average, had forecast a more robust 78 cents.But that should not be a surprise. Europe and Asia are reporting decelerating growth. In fact, World Semiconductor Trade Statistics is projecting a 12% drop in chip sales across the globe this year.No doubt, the boom-bust cycle has been an essential part of the industry. But during the past few years, there has been talk that somehow this would no longer be the case because of non-cycical trends in categories like smartphones, IoT (Internet-of-Things), robotics, AR (Augmented Reality) and AI (Artificial Intelligence). But, as shown by the steep drop of MU's revenues, this notion looks far from realistic. Last quarter, there was weakness across all the major parts of the company's business.Interestingly enough, the latest M&A moves from Broadcom (NASDAQ:AVGO) also seems to invalidate the theory that the semiconductor sector has become non-cyclical. Last year, the company acquired software developer CA, and there's buzz that it will acquire Symantec (NASDAQ:SYMC). Does this aggressive effort to diversify signal that AVGO believes that the chip industry is headed for problems? The Bottom Line on MU StockIt would probably be a stretch to say that MU stock is headed for a big drop. Its cash flows remain high and it will probably continue to buy back Micron stock. The valuation of MU stock, which has a forward price-earnings ratio of eight or so, is also reasonable.Yet for now, it's probably best to hold off on buying Micron stock. It could get tougher for MU to churn out gains as its growth profile looks dicey.Tom Taulli is the author of the upcoming book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 A-Rated Stocks to Buy for the Rest of 2019 * 7 Education Stocks to Buy for the Future of Academia * 5 Stocks to Buy as You Rebalance Your Portfolio The post Can the Rally of Micron Stock Last? appeared first on InvestorPlace.
Broadcom Makes Progress on Symantec Deal With Financing, Savings
Mon, 08 Jul 2019 13:13:17 +0000
(Bloomberg) — Broadcom Inc. has secured financing and identified cost savings for the acquisition of Symantec Corp. in an all-cash deal that could value the cybersecurity firm at more than $22 billion including debt, according to people familiar with the matter.The chipmaker received lending commitments from several banks and sees annual synergy potential of about $1.5 billion, said the people, who asked not to be identified because negotiations are private. An agreement could be reached around mid-July, though the talks could also still drag on or fall apart, the people said.The news sent shares of Symantec up 3.5% at $25.88 as of 11:21 a.m. in New York. The stock had rose by as much as 4.3% earlier on Monday.Separately, Symantec has drawn interest from its former chief executive officer, Greg Clark, who has teamed up with buyout firms Advent International and Permira Holdings in an attempt to muster a competing offer, said the people. The group so far has been unable to compete on price with Broadcom, making the pursuit a long shot, they said.Representatives for Broadcom, Symantec, Clark, and Permira were unavailable for comment. A representative for Advent declined to comment.OverstretchedA takeover of the Mountain View, California-based company would mark Broadcom’s second big bet in software, following its $18 billion purchase last year of CA Technologies. That transaction spurred some investors to express concern that CEO Hock Tan’s acquisition strategy was being stretched too far after playing a key role in consolidating in the $470 billion chip industry.That deal also came after San Jose, California-based Broadcom abandoned a hostile pursuit of rival chipmaker Qualcomm Inc., when U.S. President Donald Trump blocked the transaction citing national security risks.Symantec’s shares have gained 13% since July 3 after Bloomberg News first reported the takeover talks, giving the company a market value of about $15.5 billion. Broadcom has fallen about 4.3% in that period, valuing it at about $113 billion.Symantec plunged on May 10 after a soft forecast and the chief executive’s abrupt departure stoked investor concerns.(Updates with early trading in third paragraph.)\–With assistance from Kiel Porter.To contact the reporters on this story: Liana Baker in New York at email@example.com;Ed Hammond in New York at firstname.lastname@example.org;Ian King in San Francisco at email@example.comTo contact the editors responsible for this story: Aaron Kirchfeld at firstname.lastname@example.org, ;Matthew G. Miller at email@example.com, Liana BakerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Is Broadcom (AVGO) a Step Closer to Acquiring Symantec?
Mon, 08 Jul 2019 13:11:01 +0000
Broadcom's (AVGO) expanding product portfolio positions it well to address the needs of rapidly growing technologies like IoT and 5G.
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