Out Fox The $treet

Update Oct. 8, 2026 The Starlink Mobile threat just got real. Verizon won't trade well with this news, but unfortunately most investors ignored this risk.  The stock is down to $43 in after hours.  Original article posted on Jul. 26 Verizon Communications remains structurally challenged, with no revenue growth and intensifying competition from Starlink and satellite communications. The wireless giant beat EPS estimates in Q2'26 via cost cuts, but missed revenue by nearly $1B and reported falling revenues, highlighting weak underlying demand. Management's aggressive buybacks and $12B annual dividend persist despite $165B in debt and limited capex flexibility, raising long-term sustainability concerns. The stock faces the same structural issues that have generated limited returns the last decade compared to over 300% in the S&P 500. Verizon Communications Inc.  ( VZ ) got a nice pop from quarterly earnings, but the business continues to face structural problems. The wir...

Qualcomm's stock got hit due to a license dispute with Arm Holdings. The dispute centers on Qualcomm's acquisition of Nuvia and differing royalty rates, with Qualcomm potentially facing higher fees under a new agreement. The financial impact is likely limited; Qualcomm can absorb higher royalty rates and pass costs to customers, maintaining strong earnings and margins. The stock trades at just 15x FY25 EPS estimates with AI PC and automotive opportunities outweighing the license dispute risks. QUALCOMM Incorporated  ( NASDAQ: QCOM ) slumped following news of an ongoing license dispute with  Arm Holdings plc  ( ARM ). Considering the impacts on both companies, the dispute is likely to be resolved making the biggest issue whether  Qualcomm will have to pay a higher royalty rate. My  investment thesis  remains Bullish on the stock with a huge AI opportunity ahead and a cheap valuation for a chip stock. Read the full article on Seeking Alpha.  Disclosure:...

  Qualcomm plans to expand into AI, AR/VR, and automotive chips to diversify from the mature handset market. The company sees a big opportunity in on-device generative AI chips, with potential partnerships with Meta Platforms and Microsoft. The stock is cheap at only 12x conservative EPS targets. Out Fox The Street members get exclusive access to our real-world portfolios. See all of our investments  here »   As with a lot of technology companies,  Qualcomm  ( NASDAQ: QCOM ) ran into a wall last year as elevated Covid spending on electronics led to a dip in demand for key markets. Ultimately, though, the wireless chip giant will step over the  wall with new ventures into AI, AR/VR and automotive chips to expand from the mature handset market. My  investment thesis  remains ultra Bullish on the stock trading at multi-year lows at $115. Read the full article on Seeking Alpha.  Disclosure: Long QCOM. Please review the disclaimer page for more d...

Update - May 11, 2023 Qualcomm is testing a double bottom at $104. The wireless stock is far too cheap here so the guess is that this level holds, but investors do maintain irrational fears regarding losing the Apple (AAPL) modem business.    Original article posted on May 4 Qualcomm reported mixed FQ2'23 results. The wireless chip leader guided to weak FQ3 numbers with revenues falling sequentially due to a lack of a recovery in China and weakness probably at Apple. Despite the current headwinds, QCOM stock is cheap trading at ~8x normalized earnings once the current handset correction ends. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More »   While  Qualcomm  ( NASDAQ: QCOM ) has a promising business set up with a future beyond handsets, the company is still dependent on the mobile phone market. The wireless giant faces a difficult quarter ahead as handset revenue appears headed for anot...

  Qualcomm hosted an Auto Investor Day on September 22 to highlight the booming business in the auto sector. The wireless chip company enters a new era with business quickly shifting into the Autotech sector with a design-win pipeline surging to $30 billion. The stock shouldn't trade at only 9x EPS FY23 targets. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More »   Only a few years ago,  Qualcomm  ( NASDAQ: QCOM ) didn't have much of a business beyond smartphones. Now, the wireless chip giant hosted an  Auto Investor Day  due to surging demand and a growing order  book. My  investment thesis  is ultra-Bullish on the stock due to the cheap valuation on the dip to $120 and the growth opportunities outside of handsets. Read the full article on Seeking Alpha.  Disclosure: Long QCOM. Please review the disclaimer page for more details. 

CEO John Legere officially announced plans to retire May 1, 2020. Top executives don't randomly leave a company when a big opportunity exists. The regulatory delays are pushing the T-Mobile/Sprint 5G network buildout behind AT&T and Verizon. Avoid the stock still trading near the peak after 7 years of strong outperformance. The official loss of a dynamic CEO by  T-Mobile  ( TMUS ) has been mostly ignored by the market this week. With the pending merger of  Sprint  ( S ), the move appears to suggest John Legere doesn't see the ability to generate the outsized gains of the past decade. The departure of several executives while the Sprint deal still faces  regulatory hurdles  makes the stock one to avoid. Read the full article on Seeking Alpha.  Disclosure: Long AAPL. Please review the disclaimer page for more details. 

AT&T took a nearly 10% hit from the recent highs due to negative analyst calls. The stock will benefit from up to $45 billion in share buybacks and debt repayments from 2020 to 2022. My $42.50 price target values the stock at a 2022 EV/EBITDA multiple of only 6.9x. A few negative analyst calls has  AT&T  ( T ) suddenly down $3 from the recent yearly highs near $40. While  my views  on the financial projections of the company are similar to those of these analysts questioning revenue growth potential in entertainment and the new SVOD service, my view on the stock valuation is where the disagreement exists. The stock is cheap on this dip and my price target is still firmly up at $42.50. Read the full article on Seeking Alpha.  Disclosure: Long T. Please review the disclaimer page for more details. 

Qualcomm beat FQ4 analyst estimates that included sharp declines from last year. The stock is jumping due to solid FQ1 guidance despite ongoing disputes with Huawei and missing Apple chip sales. The company forecasts 200 million 5G device shipments in 2020. At $90, the stock remains a bargain with a $6-7 EPS target before the benefit of the global 5G launch. The quarterly results of  Qualcomm  ( QCOM ) remain extremely complex to analyze. The shifting payments of key license customers makes most of the results not comparable from period to period, but the stock is seeing a rally in initial trading following FQ4 results as the modem company sees a rebound in device shipments due to the 5G worldwide launch gaining major steam in FY20. The  investment thesis  remains bullish as the shift to 5G has considerable upside as the wireless giant will capture more content per smartphone. Read the full article on Seeking Alpha.  More commentary - Out F...

The Justice Department agreed to a settlement with T-Mobile and Sprint, removing another hurdle from closing the merger. Thirteen state attorneys general are still suing to block the merger. Dish remains in no position to effectively launch at viable 5G network. The risk/reward equation on Sprint heavily tilts towards high downside risk. As  Sprint  ( S ) surged to $8 based on a  DOJ approval clearance  of the combination with  T-Mobile  ( TMUS ), a large risk still exists the merger will fail to obtain all the necessary regulatory approvals. The stock is not correctly priced for the binary outcome with large downside risk highlighted in  previous research  from a failure to close the merger while the upside gains are now limited. Read the full article on Seeking Alpha.  Update - August 2  1st Republican state joins the lawsuit to block the merger. The deal is still not guaranteed to obtain approval placing Sprint ...

Government departments are lining up against the FTC case on Qualcomm. The only benefit of an FTC win on appeal is foreign smartphone competitors. Qualcomm remains on target to generate $7 to $8 in annual earnings per share. The stock has a logical path to reach a $100 target with risks that the wireless giant doesn't eventually win on appeal. Qualcomm  (NASDAQ: QCOM ) finds itself in an odd position of having different parts of the government fighting over how to handle an antitrust ruling against the wireless chip giant. The key thrust of why the wireless giant is likely to win on appeals is the threat to national security and the global nature of the wireless handset business in 2019. The  bullish investment thesis  remains right on track despite analysts  heading to the sidelines  on risk concerns. Read the full article on Seeking Alpha.  More commentary - Out Fox The $treet - July 22, 2019 Disclosure: Long QCOM, AAPL. Please revi...

Seeking Alpha provided this snippet where the T-Mobile (TMUS)/Sprint (S) merger is on hold again. T-Mobile ( TMUS   -1.9% ) and Sprint ( S   -3.6% ) are sliding off a new  Wall Street Journal  report that  merger talks have slowed , over conditions around the involvement of Dish Network ( DISH   +0.5% ) in the deal. Talks are ongoing, but the two wireless carriers are planning to extend their merger agreement beyond its July 29 deadline to buy more time, according to the report -- a second extension of a deal that has dragged out more than a year. A big part of the merger holdup is the requirement of the DOJ for a 4th viable wireless carrier to exist. For this reason, my prediction has long held that the merger will get blocked. Dish doesn't appear ready to step-up to the plate without major handouts and T-Mobile doesn't want the merger, if the end result is to create a strong 4th competitor. The prediction still remains that the merger gets blocke...

Qualcomm settles long lasting patent disputes with Apple. The new deal will immediately boost EPS estimates. The stock remains cheap with reasonable $7 EPS targets and a $70 stock price. In no big surprise to investors following our   investment research   on   Qualcomm   ( QCOM ), the company was able to obtain a   settlement   with   Apple ( AAPL ) over their wide disputes on patent royalties. The wireless technology giant had already garnered settlements in China and South Korea along with recent admission from Japan regulators that Qualcomm was not a monopoly. Along with constant signs that Apple was struggling to obtain a viable 5G modem by 2020, the expected outcome was a settlement that would send the stock soaring. Outside of unexpected financial terms, Qualcomm heads higher. Read the full article on Seeking Alpha.  More commentary on WhoTrades .  Disclosure: Long AAPL, QCOM. Please read the disclaimer page for m...

Qualcomm is well positioned for the global launch of 5G. The wireless giant already has 20-plus license deals and expects to generate more revenue from additional RF front-end content. The delayed launch of the Apple 5G iPhone plays to the advantage of Qualcomm. The company remains on track for $7-plus EPS prior to 5G related growth. The most important note from the Snapdragon Tech Summit last week is that 5G is a global rollout utilizing   Qualcomm   ( QCOM ) technology. A lot of the domestic wireless network providers are racing to become the first 5G providers, but anybody just focusing on the domestic market is missing the huge global market converging on 5G while other countries were far behind on 4G. Read the full article on Seeking Alpha.  Disclosure: Long QCOM, AAPL. Please review the disclaimer page for more details.   

AT&T trades back near the yearly lows at $29. The stock offers an incredible 6.8% dividend yield. Analyst meeting on Nov. 29 should provide a catalyst for the stock. Market will soon shift focus to $25 billion FCF focus. While my   investment thesis   has constantly slammed on the decisions of   AT&T ( T ) management to shift business away from building the best wireless network, the stock has turned into a bargain due to strong free cash flows. At $29, AT&T offers a nearly 7% dividend yield while recently backing incredibly bullish financials for 2019. The ongoing stock weakness remains an opportunity. Read the full article on Seeking Alpha.  Disclosure: Long T. Please review the disclaimer page for more details.   

Qualcomm is down over 8% on disappointing FQ1 guidance. Apple remains the main thorn in their financials impacting the comparisons until the license dispute is resolved. Business remains solid, with EPS targets rising even without ~$1.7 billion in high-margin license revenue. The net payout yield is set to reach 35% make a very bullish buy signal. The perplexing story of  Qualcomm  ( QCOM ) was further evident by the reaction to a  large FQ4 earnings beat . After massive stock buybacks and with 5G on the horizon, now isn't the time to abandon ship just because  Apple ( AAPL ) continues playing hardball. My  long-term investment thesis  remains solid. Read the full article on Seeking Alpha. 

AT&T launched their rebranded digital ad business. Xandr is only estimated at 3% of the total revenue base. Any success of Xandr provides upside to my previous $40 base case target. The business is off to a troubling start with AppNexus CEO leaving. Last week,   AT&T   ( T ) ushered in the aggressive move into advertising. The wireless giant hopes to more effectively compete in the advertising sector against the tech giants by collecting more data from customers via various video and wireless connections. Unfortunately, the   newly created Xandr   is more likely to resemble the failure of Oath from   Verizon Communications ( VZ ). Read the full article on Seeking Alpha.  Disclosure: Long T. Please read the disclaimer page for more details.   

Qualcomm has growth driver in the Internet-of-Things (IoT) market. The market will start looking beyond just mobile communications as FY19 starts. The $7 EPS target is a base case for FY19 with growth areas providing upside potential in the future. As   Qualcomm   ( QCOM ) looks to move away from the termination of the   NXP Semi.   ( NXPI ) merger, a big key is whether the company can shift away from reliant on the maturing wireless sector. The NXP Semi. deal promised a shift into connected cars, but Qualcomm alone is making a strong push into the promising IoT sector providing a solid long-term boost to my   investment thesis on the cheap stock. Read the full article on Seeking Alpha.  Disclosure: Long QCOM. Please review the disclaimer page for more details.   

Verizon made a near perfect dividend hike of 2.1%. The forward dividend yield is now about 4.5%. The wireless company has annual dividend payout obligations of nearly $10 billion. Exiting the media business would allow Verizon to avoid the tech wars. Last week,   Verizon Communications   ( VZ )   increased the dividend   for the 12th consecutive year. Investors wanted a bigger hike due to higher cash flows from tax reform, but this dividend hike was the perfect amount to not lose shareholders while preserving cash for the coming tech war.  Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details.   

Qualcomm (QCOM) increased the quarterly dividend by 9% to $0.62 per share. The annual dividend yield jumps to over 4% on this hike. More importantly, this sets the wireless tech giant up for a rally as the Broadcom (AVGO) buyout comes to a head.

The CEO of Broadcom (AVGO) went on CNBC to discuss the $82 offer to buy Qualcomm (QCOM) . Depending on the day, the offer is about a 30% premium above the current price. Broadcom CEO: Our offer for Qualcomm is compelling from CNBC . As Cramer points out, Qualcomm has a plan on the table to boost FY19 profits to about $7 per share. The offer isn't that compelling if the wireless giant can achieve that growth. Do you find the offer as compelling? More research: Qualcomm: NXP Semi. Closure Is Key Disclosure: Long QCOM. Please review the disclaimer page for more details.