Why Is Qualcomm Stock Falling?

Core Viewpoint - Qualcomm has experienced a significant decline in stock value, with a 7-day losing streak resulting in a total loss of 15%, equating to a market capitalization drop of approximately $30 billion, now at $166 billion [1][3]. Group 1: Stock Performance - The year-to-date return for Qualcomm stands at -9.9%, contrasting with the S&P 500's return of -0.7%, indicating underperformance relative to the broader market [3]. - The current losing streak has raised questions about the stock's valuation, prompting a reassessment to determine if it presents a buying opportunity or a potential trap [3][5]. Group 2: Causes of Decline - The decline has been attributed to a downgrade by Mizuho to neutral, concerns over market share loss to Apple, and weaker growth projections for handsets [4]. - Negative industry sentiment has contributed to the sell-off, with a price target reduction to $175 [5]. Group 3: Market Sentiment and Analysis - The current market conditions have led to increased institutional selling, with a technical breakdown observed below the $160 support level [9]. - Despite the recent downturn, Qualcomm's overall strong operating performance and financial health suggest that the stock may still be attractive, given its moderate valuation [5].