No, this isn't a next generation chip from Qualcomm (QCOM). After the bell, Qualcomm reported Q2'12 results that handily beat estimates, but the company provided disappointing guidance for Q3'12. Naturally this disappointed investors to the tune of an initial 5% loss in after hours trading. Should investors react negatively to such guidance or blow it off as management sandbagging?
It has become commonplace in the technology world to provide off-the-wall pessimistic guidance in order to not disappoint investors when actual results are reported. The end effect though is that investors get hurt in the process of having a stock sold off following earnings.
This appears to be the norm for tech stocks whether born out of the tech collapse in 2000 or due to the success of Apple (AAPL) with a history of guiding below reality. Why not follow the leader?
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