Diamonds and Dogs

11/7/19

5G is coming. Chipmaker, Qualcomm (QCOM) is up 8% to a new 52 week high following earnings and bullish comments about 2020 and 5G. Qualcomm beat quarterly expectations even as sales fell 17% to $4.8 billion. Going forward, the settlement with Apple will give Qualcomm a new big customer for the 5G rollout. Renegotiations with Samsung and LGE should also boost Qualcomm's long-term licensing business. Qualcomm received at least two upgrades with price targets of $100 and $101 a share.

So much for vacation. Expedia (EXPE) is down 25% to a three year low, its worst day since 2013, on 16 times its normal volume after posting lower-than-expected third-quarter profits. The travel services company missed by 43 cents as sales rose 2.8% to $3.37 billion, below expectations. Expedia trimmed its 2019 adjusted Ebitda forecast to an increase of 5% to 8% from a previously forecast increase of 12% to 15%. The company said the reduced guidance reflects both a mix shift to higher cost distribution channels and lower-than-expected average daily rates. Expedia said it repurchased 3.2 million shares for a combined $418 million this year. With the stock at a three year low, that investment didn't work.