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HedgeWeekly Stockwatch: Qualcomm falls after hours as AppLovin jumps
Qualcomm, AppLovin, Arm and SK hynix are in focus after results and a chip sell-off in Seoul.
HedgeWeekly Markets Desk ·
QCOM, Qualcomm: Handset chip revenue fell 26% to $5.14 billion, short of $5.25 billion expected, and the company warned of rising costs across chipmaking. Its EPS guidance midpoint of $2.25 is below the $2.32 estimate. Bull case: Car chip revenue rose 89% to $1.99 billion, above $1.69 billion expected, and revenue guidance topped consensus. Bear case: Gross margin of 52.4% missed the 53.2% estimate, and price rises take full effect only in late fiscal 2027.
APP, AppLovin: Third-quarter revenue of $2.18 billion beat the $2.08 billion consensus and EPS of $4.30 topped $4.04. Fourth-quarter revenue guidance of $2.37 billion to $2.40 billion beat the $2.25 billion forecast. Bull case: Guidance came in well above consensus, pointing to continued growth in its ad business. Bear case: The guidance sets a higher bar for the fourth quarter after a large after-hours move.
ARM, Arm Holdings: Revenue rose 27% to $1.44 billion, ahead of $1.38 billion expected, and adjusted EPS of $0.52 beat $0.47. Royalties of $670 million missed and current-quarter guidance fell short. Bull case: Licensing revenue grew 50% year on year and both revenue and profit beat forecasts. Bear case: Royalties, the recurring part of the business, missed estimates of $712 million.
000660, SK hynix: Investors fear a Democratic US Congress will curb data-centre building, cutting chip demand. Goldman Sachs estimated 45% of planned new US capacity could face temporary suspensions. Bull case: Retail investors bought a net 2.28 trillion won and institutions 847.8 billion won of Kospi shares. Bear case: Foreign investors sold a net 3.43 trillion won, and the policy risk to US data-centre plans is new.
Sources
- Investing.com
- Reuters via Investing.com
- Yahoo Finance
- XTB
- Korea JoongAng Daily
- The Korea Times
- Visible Alpha