Work harder. You are slaves to make shareholders money. That is your role . If you don't like it, sign up for the layoff. The rest of you need to s--- it up and work 100+ hour weeks so shareholders can enjoy higher dividends. That is all that matters.
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Yeah, SM was totally tied to NXP - and for good reasons in terms of massively diversifying business - and he screwed it up
BCRM was a total "execs more important than shareholders" conflict; what shareholders wouldnt want $82/share now !
So he committed to extensive buybacks because nothing better to do with the cash.
And promised highly to resolve APPle. He wont win against Cook.
PJ was ditched or maybe setup to fail with the laughable 'take it private' plan.
SM should have gone down in flames at the annual meeting following the BCRM fiasco and the impending NXP flameout. He survived by the thinnest of margins.......
Q left with a dead server, a deprecit and struggling 5 year auto effort, and IoT to nowhere but all is well. "Buybacks and 5G leadership BABY !!"
Hanging in there for the next round of "packages"
On top of all this, QCOM has promised $30B share buyback. So it will have to take another debt of $14B. With revenue of only $19B, and assuming Net Income of 20% revenue = $4B, it will take 4 years for payback. Else massive layoff.
I love taking revenge - especially after 5 years of torture from QCOM
NXP deal failure is biggest blow to Qualcomm.
SM was highly reliant on that deal and was expecting to go positive. But he didnt take care of spies and former employees. That is why you must reward generously. Else you will have to take such blows.
48 laws of power dont always work.
He is now expecting settlement, which will not happen , just as NXP deal didnt happen. And Qcom will lose another $10B.
Qcom will take 25% toll from china in near future. So $6.25B lost there.
One obvious reason is the broad market sell off. The other potential factor is paused buybacks ahead of earning. I don't know that is happening, but it is common industry practice.
The stock is low because after buyback there is no good prospective of compelling products hence no future income.
This is the basic math.
The share price is low because the CEO has failed to deliver over many years and the institutions and big banks have little expectation of better performance from him.
Imagine if your AR is some "well kinda on target, sortta, but it was an easy goal" and some "sortta missed the point here buddy". Tiny raise and zero RSUs. Message "well I guess you are kinda weak, not a absolute disaster, but long term, piss off, we dont want you"
Thats the problem now in my team. Several excellent dudes quit. Bay Area. Or Intel. Or Apple. They laid off the obvious chaff. We are left with a middle bunch of "I guess sortta ok but dont really give a sh-- but will surely walk around fast and look really really busy" folks. Oh an a veteran who is still whiling his time to retirement. Mid to late 50s, seriously trying to get to 60 but doesnt need the $$. Pisses everyone else off with his constant tales of biking, running and sporting while we are working.
Thanks for the info, but why blow up the leaker's identity?