Skyworks Solutions About To Be A Grounded Problem
Apple began November by reporting that iPhone shipments missed Wall Street expectations for the quarter. They also said that it will no longer report how many iPhones it sells. As Wall Street continues to adjust their forecast down for Apple, HSBC downgraded Apple shares to Hold from Buy yesterday. They believe the growth period of Apple’s most iconic hardware, the iPhone has largely ended.
“What has made the success of Apple, a concentrated portfolio of highly desirable (and pricy) products is now facing the reality of market saturation,” the banking and financial services company wrote.
Cirrus Logic Inc., a maker of audio chips used in the iPhone, preannounced and cut its revenue outlook for the December quarter yesterday due to “recent weaknesses in the smartphone market. The guidance cut is mainly related to disappointing iPhone XR demand. Along with the equity markets, the news sent its stock down as much as 5%.
Skyworks Solutions, Inc. (NASDAQ: SWKS), a radio frequency chipmaker will be presenting a company overview at the Barclays Global Technology, Media and Telecommunications Conference today at The Palace Hotel in San Francisco.
Shares of Skyworks Solutions fell by 16% in November, after the company reported fiscal fourth-quarter earnings results due to lackluster demand for the new iPhones.
Although they met Wall Street expectations for the quarter and although Skyworks CEO Liam Griffin assured analysts that the company's "content position is solid," their forward guidance didn’t meet Wall Street expectations.
Apple is Skyworks Solutions largest customer. Sales to Apple represented 47% during the last fiscal year, so will they preannounce today as well? I really don’t know, but the charts suggest there is more downside risks. Lets go to the charts for the details.
On the monthly chart, price broke a 5 year monthly up trendline.
Also on the the monthly chart, we saw negative divergence as well.
On the weekly chart, the chart suggests there is still further downside. My 1st target is $56, with a final target at the weekly demand.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
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