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Qualcomm Shares Rise 6.7% Amid Optimism for Network Upgrades
Qualcomm Shares Rise 6.7% Amid Optimism for Network Upgrades
San Diego, Dec. 13 (Bloomberg) -- Shares of Qualcomm Inc.,
which have surged more than 16-fold this year, rose 6.7 percent
more to a record amid optimism that the company will benefit from
wireless-network upgrades to handle data traffic.
Qualcomm, the developer of the world's second-most popular
cell-phone technology, rose 26 1/16 to 417 9/16. It's the best-
performing stock in the Standard & Poor's 500 Index in 1999.
The company will be a ''clear beneficiary'' of upgrades by
wireless-service providers to handle more Internet traffic on
networks that use its technology, Lehman Brothers analyst Tim
Luke wrote in a report to investors. Luke said his earnings
estimates of 96 cents a share in the fiscal first quarter and
$4.16 in fiscal 2000 ''remain conservative.''
''In addition, Qualcomm will benefit from the surge in
royalties associated with a new wave of handset upgrades,'' wrote
Luke, who rates Qualcomm a ''buy.''
At a Lehman investor conference last week, Qualcomm Chief
Executive Irwin Jacobs said the company is still ''on track'' to
announce the sale of its handset business by the end of the year,
said Luke.
Separately, Qualcomm today said it reached agreements with
Guangdong South Satellite Telecommunications Service Co. to
provide Qualcomm's OmniTRACS services, which let companies manage
fleets of vehicles, to China's two largest transportation
companies.
NYSE/AMEX delayed 20 min. NASDAQ delayed 15 min. |
