Qualcomm's Stock Price Plunges After Disappointing Earnings Report

Qualcomm's stock price took a nosedive on Thursday after the company released its latest earnings report. The chipmaker reported a decline in revenue and earnings, missing analysts' expectations. The news sent Qualcomm's stock price down by more than 10% in premarket trading.

Qualcomm's revenue for the fourth quarter of 2023 came in at $9.3 billion, down from $10.1 billion in the same period last year. The company's earnings per share also declined, from $2.42 in the fourth quarter of 2022 to $1.98 in the fourth quarter of 2023.

Analysts had expected Qualcomm to report revenue of $9.6 billion and earnings per share of $2.10. The company's weak results were attributed to a decline in demand for smartphones and other mobile devices. Qualcomm's chips are used in a wide range of devices, including smartphones, tablets, and laptops. The decline in demand for these devices has weighed on Qualcomm's financial performance.

In addition to the weak earnings report, Qualcomm also announced that it would be cutting its quarterly dividend by 50%. The company said that the dividend cut was necessary to preserve cash and maintain financial flexibility.

Qualcomm's stock price has been under pressure in recent months due to concerns about the company's exposure to the smartphone market. The smartphone market is slowing down, and this has hurt Qualcomm's sales. The company is also facing competition from other chipmakers, such as MediaTek and Samsung.

Qualcomm's weak earnings report and dividend cut are likely to further weigh on the company's stock price. Investors are likely to be concerned about the company's ability to grow in the current economic environment.