The chipmaker reported earnings in line with analysts' estimates, but revenue was better than expected. Qualcomm also raised full-year guidance. As a result, shares rose Thursday morning.
Although Apple (AAPL) had reported that China is stalling and that there may be difficulties ahead, Qualcomm offered a different assessment.
Management said there is plenty to be excited about, with all the new phones and their capabilities. They also highlighted their plan to roll out a huge LTE network in China, along with plans for a worldwide rollout of a 4G network."You just don't sell this stock," Cramer said, siding with hedge fund manager Leon Cooperman, who highlighted Qualcomm as one of his "best picks" at last week's Delivering Alpha Conference. According to Cramer, the company could earn $5 per share in earnings, and if it traded with a price-to-earnings ratio of 15, it would add about $11 to the current share price. He disagreed with a downgrade from Citigroup, asking why investors should sell a stock that is currently trading with a P/E of only about 13. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long AAPL.
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