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QUALCOMM - AI Stock Analysis

Analysis generated November 17, 2024

QUALCOMM Inc. is a world leader in wireless technology, creating essential innovations that drive the growth of the mobile ecosystem. The company has been a dominant force in the 5G revolution, providing essential solutions and platforms that are crucial for smartphone manufacturers and other industries reliant on mobile technology. QUALCOMM is highly recognized for its Snapdragon processors, which power many of today’s leading smartphones.

Fundamental Analysis

QUALCOMM's revenue for the last quarter was $10.2 billion. This marks an impressive increase of 9.06% over the previous quarter, indicating that the company is experiencing quarter-over-quarter growth. Year over year, this figure represents an increase of 18.69%, further signifying robust and sustainable growth. This steady increase in revenue highlights QUALCOMM’s ability to maintain and expand its market position.

Net income for the last quarter stood at $2.92 billion. Compared to the quarter before, this is a significant jump of 37.15%, underscoring the company’s operational efficiency and financial health. Year over year, net income has surged by a remarkable 95.97%, showcasing exceptional profitability growth. Such an increase typically reflects rising demand for QUALCOMM’s products and services, solid cost management, or both.

However, it is essential to note a crucial point of concern in the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). For the last quarter, EBITDA was $0, which is a decrease of 100.00% compared to both the previous quarter and the same quarter last year. This calls for caution as EBITDA is a key indicator of a company’s operational performance, and a drop to zero signifies potential underlying issues.

Currently, QUALCOMM's P/E ratio is 17.95. This ratio is within the normal range and does not suggest undervaluation or overvaluation. However, it’s essential to factor in industry-specific averages and growth prospects when evaluating the P/E ratio comprehensively.

Lastly, insider selling has been observed in the past couple of months. Insiders selling stocks can sometimes signal a bearish outlook, though this is not always indicative of the company's long-term performance.

Technical Analysis

Todays’ stock price for QUALCOMM is $160.50. This represents a 6.20% decrease from a month ago, indicating potential short-term concerns. However, compared to a year ago, the stock price has increased by 26.56%, suggesting that the long-term trend is positive.

The trend appears to be bearish currently. The SMA10 (Simple Moving Average over 10 days) is 165.03, lower than the previous SMA10 of 166.27, pointing to a potential downward trend in price movements.

The RSI (Relative Strength Index) is 55.5, indicating a neutral condition. The RSI is a momentum oscillator that measures the speed and change of price movements, and a value above 70 often shows overbought conditions, while a value below 30 indicates oversold conditions. A neutral RSI reflects that the stock is neither overbought nor oversold.

Alternative Data Analysis

Alternative data analysis offers additional insights into QUALCOMM’s operational environment beyond traditional financial metrics. QUALCOMM has 1,220 open positions, which have grown by 26% in the last couple of months. This suggests that the company is actively hiring and expanding, reflecting growth prospects and confidence in future demand.

The business outlook among employees at QUALCOMM is neutral, offering no clear indication of overly positive or negative sentiment internally.

Customer acquisition appears steady, with an estimate of 3.5 million visitors to their webpage, unchanged over the last few months. Customer engagement is also stable; QUALCOMM has 200,000 Instagram followers and 450,000 Twitter followers, with no significant changes observed recently. However, no growth indicates a potential plateau in customer interest or engagement online.

Lastly, based on AltIndex’s AI score, QUALCOMM has an AI score of 49, indicating a hold signal based on the combination of fundamental, technical, and alternative data analysis.

Conclusion and Recommendation

QUALCOMM demonstrates strong fundamental health with significant revenue and net income growth quarter-over-quarter and year-over-year. However, the drop to zero in EBITDA highlights an essential area of concern requiring further investigation. From a technical standpoint, short-term trends indicate bearishness, while the long-term outlook remains positive. Despite some insider selling, which could signal caution, alternative data shows QUALCOMM in a period of neutral employee outlook with stable customer engagement and potential for growth as indicated by hiring trends.

Given the mixed signals but overall positive long-term indicators, the recommendation would be to hold the stock. This allows investors to benefit from QUALCOMM’s proven financial growth while monitoring any changes that may address the concerns highlighted in the EBITDA and insider selling. The AI score also supports a hold, further strengthening this recommendation.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.