Shares of tech giant Qualcomm Inc. (NASDAQ: QCOM) have stumbled into the new year on the back of a sudden shift in analyst tone. The stock fell nearly 5% to start the week and is now trading back under $170, a sharp reversal from the optimism that had been building late last year, when it looked poised to break through resistance around $184.
The catalyst was the first notable analyst update of the year. The team over at Mizuho downgraded its rating on Qualcomm from Outperform to Neutral, while also cutting its price target from $200 to $175. Now, on its own, that target still sits above where the stock trades today, suggesting the reaction has been overdone. But the reasoning behind the downgrade is what has unsettled investors. As we head into the rest of the year, investors need to ask themselves whether they should give up on Qualcomm or perhaps double down.
