Minutes before markets closed last Friday, rumors circulated that Qualcomm (QCOM) offered to buy Intel (INTC). The proposed buyout does not make sense. Not only would regulators not approve the deal but Qualcomm is not big enough to complete the deal.
QCOM stock closed at a market capitalization of $188.2 billion, compared to Intel’s $93 billion. A stock swap offer plus cash would not be big enough to win over Intel investors. More importantly, China would not likely approve the deal.
Boeing (BA) will continue to test new lows this week. The defense head, Ted Colbert, left the company. CEO Kelly Ortberg, who took the role last month, will continue to restructure the leadership team. Until Boeing achieves higher quality controls and lower cost overruns, BA stock is not a buy.
FedEx (FDX) lost 15.23% last Friday after markets reacted to the firm’s quarterly results. The firm missed revenue and earnings expectations and issued a slightly lower guidance.
Customers are using lower-cost shipping alternatives. The firm lost a deal to provide shipping services for Amazon (AMZN), weighing on results.
Watch Johnson & Johnson (JNJ) shares move today. The firm is trying for the third time to file for Chapter 11 for its Talc unit. This would limit the settlement payouts to around $8 billion.
