EU antitrust regulators will sanction Qualcomm (NASDAQ:QCOM) for hurting competition by paying Apple (NASDAQ:AAPL) to use its chips exclusively, according to FT. Up to 2 billion fine - announcement could come as early as tomorrow.
https://www.msn.com/en-us/money/news/ft-qualcomm-facing-potential-dollar2b-eu-fine-over-apple/ar-AAv4OcK
Sure hope QC turns it around - outlook No Bueno as our gardener put it.
@1tod The fine did not affect the stock price much at all. Investors don't look at fines as an issue. Remember when Qcom was under investigation by China and the stock price dropped? Once the fine was announced, the stock price went up because they saw this as a resolution. My guess that is because investors are greedy and view fines just as a cost of doing business. Nothing happened to the stock price when Taiwan announced its fine.
A spending cut is not a one time thing. What cost savings you make now will be cost savings for the next year as well. So that results in the stock price going up.
$1B cost savings potentially is an annual savings, not a one time savings. That is the theory.. Of course what these programs do is build up demand for things and costs are just pushed into the future where they cost more. The best true way to cost cutting is to cut off an unprofitable or low profit arm and never look back.
@1hfn If such a „one time thing“ doesn‘t affect the stock price, then why should a $1B savings program affect the stock proce?
It's all good. Get back to work!
Maybe Trump will have someone take a look at this as well, see if the US can levy some fines, political payback for some of those Obama and Hillary donations Q made. Engineers can cover 2 billion with a one year 50% pay cut, our cutting 10k workers, so shouldn't be an issue.
This should not affect stock that much because this is a onetime thing. I don't think stock dropped after Taiwan ruling.
oops...Hock Tan will win, LOL
@ekj the only thing the Pillsbury Doughboy is finding is crumbs on his shirt...
LOL EU regulators giveth (approve NXP acquisition) and taketh (impose $2bn fine on QC).
$70/share started looking good to me
Don't worry guys
GD will find 2B in savings under his pillow tonight