After Skyworks Solutions smashed estimates when it reported earnings late Thursday, shares of the relatively obscure supplier of technology that helps power Apple’s wireless communications in iPhones and iPads soared in Friday trading, up 8.9%.
The chip maker’s executives didn’t mention Apple ‘s name in the conference call or in the company’s quarterly filing with the Securities and Exchange Commission. But when CFO Kris Sennesael said that the company’s largest customer accounted for roughly 70% of the fiscal-first quarter revenue, Wall Street knew that was code for Apple.
“Obviously, it was a great quarter with that large customer that just launched their first 5G phones, which with very rich Skyworks content inside,” Sennesael said.
Raymond James chips analyst Chris Caso wrote in a Thursday note to clients that he was encouraged that Skyworks had a strong quarter because of Apple, and not boosted by sales in China.
“Looking into the fall launch, we’re confident that [Skyworks] will maintain and grow their Apple content (which has been the subject of some debate), and we expect a benefit from improving iPhone units as well as the roll off legacy phones and moving richer content 5G phones down the iPhone stack,” Caso wrote. He raised his target price to $205 from $175, and reiterated his equivalent of a Buy rating.
MacDailyNews Take: A rising tide lifts all boats. Even better is the fact that the GameStop triumph is making hedge funds sell Apple shares to cover their short losses, artificially putting AAPL on a nice discount sale just after all-time record earnings!
Skyworks soars – and yet Apple doesn’t whom a lion share of their business comes from, makes sense right – um no it doesn’t make any whatsoever, Apple stock should have soared after this remarkable blowout 111 B quarter or the days after – instead a $13 haircut in the days to follow, I starting to believe the numerous articles regarding Wall street being very crooked and corrupt.
I love that Citadel lost 2.8 Billion and had to borrow to cover its shorting. Finally, mostly normal folks, small investors, took from Wall St. and transferred it to Main St. (I hope this continues) while shithead US Congress did the opposite in the bailouts by bailing out billionaire hedge funds.
Let the insurrection loose! Civil disobedience is the phrase of the day. Figure out how to stick it to the ‘man’ legally. Effe the system! Destroy the cronies! Legally make life difficult for everyone. Stand free! Never thought I’d stand with Redditers!
I wrongly chided conniver Citadel for its loss when it was the ailing hedge fund gambler Melvin Capital that suffered the losses while schemers Citadel and Point72 colluded to inject the $2.8 billion into it.
I even made an artwork about it where a man was standing in front of a citadel and was strongly chiding it. It’s one of my most important and most magical works.
If only you weren’t such a tragical buffoon, Dingleberry.