What’s The Downside For Qualcomm Stock?

What’s The Downside For Qualcomm Stock?

L´HOSPITALET, CATALONIA, SPAIN - 2019/02/28: Logo of the Qualcomm brand with 5G technology seen ... [+] during the Mobile World Congress 2019 in Barcelona. (Photo by Ramon Costa/SOPA Images/LightRocket via Getty Images)



LightRocket via Getty Images

Up almost 2.5x since March, we believe Qualcomm stock (NASDAQ: QCOM) could see significant downside. Qualcomm stock is up almost 70% so far this year. It traded at $91 in February 2020 – just before the outbreak of coronavirus – and is currently 60% above that level, as well. Further, due to poor full-year 2020 results, and unlikely demand growth in the near to medium term, the stock has the potential to drop around 20% to levels below $120. Our conclusion is based on our comparative analysis of Qualcomm stock performance during the current crisis with that during the 2008 recession in our interactive dashboard.

2020 Coronavirus Crisis

Timeline of 2020 Crisis So Far:



12/12/2019: Coronavirus cases first reported in China

1/31/2020: WHO declares a global health emergency.

2/19/2020: Signs of effective containment in China and hopes of monetary easing by major central banks helps S&P 500 reach a record high

3/23/2020: S&P 500