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Stephen Weiss: Weakness in Qualcomm is Buying Opportunity

If Qualcomm sells off in the wake of earnings, trader Stephen Weiss thinks investors should dive in, head first.

“I think it’s a great story, I’d own it here. It’s cheap and I think the company is growing like a weed,” he says.

Traders Guy Adami and Pete Najarian also like Qualcomm but suggest waiting for a pullback. “If the stock trades down to $53 I’m a buyer,” says Adami. “If it starts to tumble – below $50 – I’m a buyer,” adds Pete Najarian.

And it looks like all the traders may get to put money where their mouths are.

Shares of Qualcomm fell in late trading despite what looked like strong results. The company posted an increase in fiscal third-quarter profit and revenue helped by strong demand for smartphones. Also they raised its profit and revenue estimate for the full year citing smartphone growth and an acquisition.

Weiss thinks investors might have been confused by charges and accounting changes in the earnings. But what really matters, he says, is that “Units were up 18%. Pay attention to that.”

By the numbers Qualcomm's profit rose to $1.035 billion, or 61 cents per share for its fiscal third quarter ended in June 26, from $767 million, or 47 cents per share, in the same quarter the year before. Revenue rose to $3.62 billion from $2.7 billion. Wall Street analysts had expected revenue of $3.59 billion, according to Thomson Reuters I/B/E/S.

It’s worth noting that on May 24 Qualcomm said it completed its acquisition of another wireless chip maker, Atheros Communications.


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Trader disclosure: On July 20, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Terranova owns (XOM) ;Terranova owns (DIS); Terranova owns (WFM); Terranova owns (LULU); Terranova owns (MSFT); Terranova owns (TM); Terranova owns (JWN); Terranova owns (MCD); Terranova owns (PEP); Terranova owns (MA); Terranova owns (BX); Terranova owns (GS); Terranova owns (DAR); Terranova owns (CAT); Terranova owns (VRTS); Terranova owns (AAPL); Terranova owns (F); Terranova owns (CVI); Terranova owns (IBM); Terranova owns (FCX); Adami owns (AGU); Adami owns (C); Adami owns (GS); Adami owns (INTC); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU); Pete Najarian owns (AAPL); Pete Najarian owns (BX) calls; Pete Najarian owns (HPQ); Pete Najarian owns (MS); Steve Grasso owns (AKS); Steve Grasso owns (AMD); Steve Grasso owns (ASTM); Steve Grasso owns (BA); Steve Grasso owns (BAC); Steve Grasso owns (C); Steve Grasso owns (D); Steve Grasso owns (JPM); Steve Grasso owns (LIT); Steve Grasso owns (LPX); Steve Grasso owns (MAR); Steve Grasso owns (MHY); Steve Grasso owns (NDAQ); Steve Grasso owns (PFE); Steve Grasso owns (PRST); Steve Grasso owns (XHB); Steve Grasso owns (XLB); Steve Grasso owns (XLI); Stutland Owns (GOOG) and short (GOOG) calls; Stutland Owns (IBM) and owns (IBM) calls; Stutland Owns (INTC) and owns (INTC) calls

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