There is a reason for these dramatic changes, but it’s not because Qualcomm had a down quarter. The company has been taken over by activist investors who are pushing the company to make changes and commit to stock buybacks that will boost the profits of institutional investors, even if those options harm Qualcomm’s ability to compete in the future.
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Trading long-term viability for short term payout.
Sounds like this company has decided to cash in the chips.
Anonymous122976, does every company borrow 10% equiv of mkt cap to buy back their own stock? Long term that could ERODE eps, despite short term juicing. Kinda like how your balls will shrink on steroids
In the same way that zero is not a floor for interest rates, against all logic (NIRP), why should 100% be a ceiling for the amount of cash flow to return to shareholders? start printing qbucks currency for shareholders, to be used to buy Toq watches, etc
I wish you non market rookies would stop making posts like this. All big companies work for shareholders to improve value. Go take some classes on this and quit making these DUMB STUPID F**ING POSTS. Its so dam irritating how STUPID you are.
Maximizing shareholder value has vastly increased inequality in America, by tying executive revenue to how much money they give back to the investment system, rather than how much they invest in their own employees and ongoing operations, or what the long-term impacts of their policies are over 3-5 years.
In Q1 and Q2, Mollenkopf barely mentions stockholders or shareholders. In Q3, he references “stockholders” nearly two dozen times and uses the phrase “Stockholder value” or “Shareholder value” a combined 11 times. That number would be higher if we considered the number of times he uses the word “stockholder” and “value” in the same sentence — our graph doesn’t capture a sentence like “We pledge to increase our value and pay higher dividends to both stockholders and stakeholders.” In some places, Mollenkopf literally refers to creating stockholder value twice in the same paragraph.