Qualcomm CEO: The market is making 'an absolute mistake' on our stock

1 month ago 9

Qualcomm has enactment up immoderate eye-popping maturation numbers nether CEO Cristiano Amon portion besides expanding into blistery areas specified arsenic in-car technology.

However, shares of the tech elephantine are trading connected a forward price-to-earnings multiple of astir 10.7 times — much comparable to a stodgy worth banal than a fast-growing tech institution similar Qualcomm.

Amon says investors should rethink however they are viewing Qualcomm, and bash it quickly.

"I deliberation it's truly a mistake for the marketplace to proceed to look astatine Qualcomm and accidental this is simply a communications institution for the mobile market." Amon told Yahoo Finance connected the sidelines of the World Economic Forum (video above). "Then they look astatine valuations successful the mobile marketplace and accidental that's a problem. It's an implicit mistake. That is not the Qualcomm of today."

Qualcomm Inc. President and CEO Cristiano Amon speaks during the company's property lawsuit for CES 2022 astatine the Mandalay Bay Convention Center connected January 4, 2022 successful Las Vegas, Nevada. (Photo by Ethan Miller/Getty Images)

The institution has foodstuff to backmost up Amon's claims.

For one, Qualcomm is simply a fewer weeks removed from reporting a 41% summation successful quarterly income and a 69% leap successful net per stock amid beardown request for its chips. The maturation rates successful income and net marked an acceleration compared to the 4th Qualcomm reported backmost successful aboriginal February.

Meanwhile Amon — who took implicit arsenic CEO connected June 30, 2021 —revealed cardinal caller partnerships with large car companies BMW, General Motors and Volkswagen. The institution has besides been retired determination highlighting its yawning backlog of deals to enactment the enlargement of the metaverse and upside imaginable from the displacement to 5G smartphones.

Yet, that bizarre, beneath marketplace price-to-earnings aggregate persists.

"If you look astatine what's happening to america close now, our mobile strategy is truly focused connected premium and high-tier and they person proved to beryllium precise resilient." Amon added "In a marketplace that is level with a antagonistic bias, we grew 50% due to the fact that we are gaining stock with Samsung. But that's not the story, we person a large mobile story, we are increasing 50%. But automotive is growing, net of things grew 61% twelvemonth implicit twelvemonth and I deliberation we are conscionable scratching the surface. We are truly a processor institution for each of those connected processor opportunities happening astatine the borderline and we present person a fig of extremity markets increasing beyond mobile."

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