Qualcomm Inc. ($QCOM) Stock | Shares Jump On New Patent License Agreement


Qualcomm Inc. (NASDAQ: QCOM)



Qualcomm News

Shares of QCOM jumped in the premarket session today after the company announced that it has entered into two new patent license agreement with Chinese smart phone makers called Haier and Tianyu Communication Equipment. This is great news as there was a lot of doubt about being able to tap into the highly regulated Chinese market. This agreement allows Haier and Tianyu the ability to manufacture and sell devices with QCOM’s 3G and 4G technology in lieu of royalty-based fees.

According to Zacks Equity Research,

“We believe these new patent license agreements will lessen the chip maker’s struggles in China and take it a step closer to solving issues pertaining to its most profitable licensing patent business. Further, the deal should boost Qualcomm’s top line by bringing in additional royalties and also solidify its foothold in the Chinese market.” (Yahoo)

Keep a close eye on QCOM in 2016 as news like this can sometimes spark some new interest in the shares and you don’t want to be left behind. As of the close yesterday, shares are down almost 32% on the year.


QCOM Technicals

QCOM Chart

QCOM shares are up a point premarket with news surfacing of deals being made in China. Yesterday shares closed at $49.58 and opened today at $50.28, a 1.4% increase, with highs coming in at $51.25 and then closing the day at $50.88. This was an important move technically for QCOM as the $50 level has proved to be a solid level of resistance and now should provide support as long as it stays above it. Look for resistance to come in at $52 and the $52.39 levels.


Looking back on the year, you can see on the daily chart that shares have taken a beating this year so hopefully this fresh news will give it some momentum to the upside. Shares have not broken the 200-day moving average all year and have slowly trended down from highs of $75.30 to lows of $45.93, a 39% beating. Look for shares to gain some traction in 2016 and make an attempt to cross the 200-day moving average currently sitting at $60.77. Currently analysts have an average price target of $61.63.


Company Profile

QUALCOMM, Inc. engages in the development, design, manufacture, and marketing of digital telecommunications products and services. It operates through three segments: Qualcomm CDMA Technologies, Qualcomm Technology Licensing, and Qualcomm Strategic Initiatives. The Qualcomm CDMA Technologies segment develops and supplies integrated circuits and system software based on technologies for the use in voice and data communications, networking, application processing, multimedia, and global positioning system products. The Qualcomm Technology Licensing segment provides rights to use portions of the firm’s intellectual property portfolio. The Qualcomm Strategic Initiatives segment invests in the technology, design, and introduction of products and services for voice and data communications. The company was founded by Franklin Antonio, Adelia Coffman, Andrew Cohen, Klein Gilhousen, Irwin Mark Jacobs, Andrew Viterbi, and Harvey White in July 1985 and is headquartered in San Diego, CA. (MarketWatch)