Qualcomm's bad news traveling fast

Stock of Qualcomm has been down this morning (November 5), as the earnings and future guidance announced yesterday evening disappointed Wall Street. At 9:22 a.m. Pacific Time, the stock was down 13.84 percent to $51.88; two hours later it had fallen 15.5 percent to $50.90

"The shares have fallen more than 21 percent since the start of 2015," says Johanna Bennett of Barron's "Tech Trader Daily" column. The index of semiconductor stocks is up 3.5 percent for the same period.

Revenue for its most recent quarter is down 18 percent from the figure from the same quarter a year ago. Qualcomm has told analysts that it has problems collecting technology licensing fees for smartphones sold in China.

"It's facing tough negotiating tactics at [Chinese] smartphone makers," says Bloomberg News. Qualcomm has already suffered from Apple and Samsung — the top two smartphone providers — increasingly using their own components, points out Bloomberg.

Those who post on Thelayoff.com, a website devoted to corporate-layoff commentary, are blasting Qualcomm, perhaps out of bitterness related to the company's plan to trim employment by 15 percent

"Where's all the Qualcomm cheerleaders this morning?" remarks one. "I will laugh my ass off if Qualcomm finishes below $50 today," says another. And the unkindest cut of all: "Good thing that the upper floors at the Qualcomm high rise are locked. With how badly [Qualcomm's] stock is tanking," some people might jump, says another.

Qualcomm is a major employer in San Diego. Bad news for the company is bad news for San Diego's economy.