Qualcomm’s shares are up almost 7% to $40.65. The shares have been doing so poorly over the last year that it could be a dead cat bounce, but it’s not.
The Associated Press say that Oppenheimer upgraded the stock from "neutral" to "buy". The primary reason for the change of heart is "Cingular Wireless’s decision to use MediaFlo, a wireless network developed by Qualcomm, to bring broadcast television to its cell phones"
Nice, but will anyone use it? Recent studies indicate that only 10% to 15% of cell phone customers will want to use their phones for video programming. And, the screens are a bit small for the purpose.
Does MediaFlow have a future as a big money maker for Qualcomm? It’s only a guess either way.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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