Kerrisdale Capital Issues Negative Report on Qualcomm Incorporated
- Qualcomm is likely to lose in an ongoing trial pitting the company against the U.S. Federal Trade Commission, the latest development in a global regulatory crackdown on the company's business model
- Kerrisdale believes the presiding judge will force Qualcomm to renegotiate existing contracts and license its patents to its competitors, potentially cutting its earnings in half
NEW YORK, Jan. 23, 2019 /PRNewswire/ -- Kerrisdale Capital, a private investment manager, has published a report explaining its short position in Qualcomm Incorporated (NASDAQ: QCOM), a mobile chip maker facing regulatory headwinds that are likely to dismantle the company's largest source of profits – its patent-licensing business. The company is currently facing off in court against the U.S. Federal Trade Commission, which has sued Qualcomm for engaging in anti-competitive and monopolistic tactics by exploiting its dominance in the chip market to extract unfair patent royalties. Kerrisdale believes that the resolution of this case, which should play out over the next several weeks, will substantially weaken Qualcomm's ability to charge customers the high licensing that have accounted for a majority of the company's historical profits.
Kerrisdale's full report can be found at https://kerr.co/qcom.
Kerrisdale has a short position in shares of Qualcomm and stands to benefit if its share price falls.
About Kerrisdale Capital
Kerrisdale Capital Management, LLC, is a fundamentally-oriented investment manager that focuses on long-term value investments and event-driven special situations.
Contact
Agnes Cao
Kerrisdale Capital
[email protected]
212-257-4385
Sahm Adrangi
Kerrisdale Capital
[email protected]
212-792-9148
SOURCE Kerrisdale Capital Management, LLC
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