On July 30, Qualcomm (QCOM) fell sharply after posting results. Investors are panicking that Apple (AAPL) might make in-house modems. That would weaken sales of Qualcomm modems.
The Apple rumor is many years old. The phone giant cannot afford to risk making lower-quality communications chips in-house. Instead, it should continue buying them from Qualcomm. That would free up Apple to start developing artificial intelligence solutions.
Qualcomm expects QCT handsets to grow by 5% Q/Q. XR/AR is a catalyst, too. Meta Platforms (META) needs them for smart glasses.
Aptiv (APTV), a chip supplier for automotive firms, is in value territory at a 9.3 times forward P/E. In Q2, revenue of $5.21 billion increased by 3.2% Y/Y.
Reddit (RDDT) shares broke out ahead of and after its Q2 report. It earned $0.45 a share, after revenue grew by 77.8% Y/Y to $500 million. In the third quarter, Reddit estimates revenue of $535 million to $545 million.
Reddit has the operating leverage to grow its operating cash flow. User and revenue growth show no signs of slowing.
Amazon (AMZN) risks forming a downtrend after posting third-quarter earnings. Revenue grew by 13.3% Y/Y to $167.7 billion. However, guidance is weak. Amazon expects net sales of up to $179.5 billion. Investors want more than the 10% to 13% Y/Y growth.
