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Qualcomm's Analysts Are Throwing in the Towel—Time to Be Brave?
Author: Sam Quirke. Posted: 2/18/2026.
Key Points
- Qualcomm has fallen from early-January levels above $180 to around $140, erasing two years of gains and returning to 2020 levels.
- A wave of downgrades and reduced price targets suggests confidence is cracking across Wall Street.
- But with the stock’s RSI flashing extremely oversold conditions and support forming near $135, contrarians are beginning to circle.
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Despite trading above $180 in the first week of January, shares of tech titan Qualcomm Inc (NASDAQ: QCOM) now sit just above $140. The stock has effectively given back two years of progress and returned to roughly the same price it traded at in 2020. For long-term holders, it's been a frustrating and bruising ride.
Making matters worse, the narrative has weakened in recent weeks. Less-than-ideal guidance in the company's Q1 results earlier this month added fuel to concerns about the smartphone cycle and Qualcomm's ability to generate meaningful growth beyond that market. Investors who have been burned by past false starts appear to have finally lost patience, and it's hard to blame them.
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What makes the situation feel even more uncomfortable for Qualcomm is that analysts who once largely overlooked the name are now taking a more cautious stance and lowering ratings.
Still, as we've recently highlighted, this is exactly the sort of setup that can attract contrarian buyers — a buy-the-dip opportunity may be forming. Let's take a closer look.
The Bears Are Growing Louder
The shift in tone from the sell side has been noticeable. Daiwa Securities cut its rating on Qualcomm from Outperform to Neutral last week, while Morgan Stanley initiated coverage with an Underweight rating earlier this month. Wells Fargo has also maintained a defensive stance, reinforcing the idea that investors should be cautious.
These reduced price targets extend down to the low $130s, implying that several analysts still see room for further downside from current levels.
The bear case is straightforward. Qualcomm may appear inexpensive on the surface, but cheap stocks can remain so for extended periods if growth disappoints.
More cautious voices argue the stock is already priced for muted growth, with little expectation of meaningful expansion. If the smartphone cycle — to which Qualcomm is heavily exposed — remains subdued or earnings disappoint again, there's nothing to prevent further selling pressure.
Even so, it's notable that parts of the analyst community remain optimistic. As we'll see below, a handful of firms have continued to rate the stock as a Buy or equivalent, underscoring how divided sentiment has become.
Price Action Suggests a Low May Be Forming
While analyst downgrades make headlines, a stock's price action and technical setup can offer a clearer read on the short-term story. Qualcomm's relative strength index (RSI) is currently signaling extreme oversold conditions, suggesting selling pressure has reached unusually high levels. Historically, readings like this have rarely persisted for long.
Importantly, the stock has found support after the sharp post-earnings drop in early February. After weeks of consecutive losses, the past week has shown a string of green days. That's a subtle shift in tone that may indicate the bears are beginning to run out of steam.
The $135 level — which bears have been unable to break decisively — now looks like a key line in the sand. If that area continues to act as support, the technical setup could flip from breakdown to consolidation. Given how oversold the stock is, it might not take much to spark a recovery rally.
The Contrarian Case Is Worth Exploring
Not all analysts have abandoned the name. DZ Bank upgraded the stock to a Strong Buy last week, Argus reiterated its Buy rating earlier this month, and Piper Sandler maintained an Overweight stance — with some bullish price targets reaching $200.
From current levels, that implies potential upside of roughly 40%, which, combined with oversold technicals and stabilizing price action, is compelling to contrarian investors. They don't need Qualcomm to become a market darling overnight; they just need the stock to stop falling. Looking at the chart over the past week, they're starting to get their wish.
Weighing the Opportunity
There's no denying Qualcomm is likely to remain frustrating in the near term. Cyclical headwinds and a chronic inability to sustain upward momentum have repeatedly undermined confidence. However, extreme frustration can also create opportunity when sentiment turns very negative.
If the stock can hold above $135 and continue to stabilize through the coming days, a cautiously bullish stance begins to make sense. If that level fails, the bears may still have another leg down.
META Resets Reality Labs, Grows Message Sales as Ad Engine Roars
Author: Leo Miller. Posted: 2/13/2026.
Key Points
- Meta's advertising business is firing on all cylinders, with the firm forecasting 30% growth next quarter.
- However, investors are eager to see the company pull different AI levers to monetize its massive investment.
- Meta is pivoting its Reality Labs business to stem losses, while business messaging revenue is growing briskly.
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Meta Platforms' (NASDAQ: META) latest earnings report made one thing clear: the company's advertising business remains its primary growth engine. That business is expanding at a pace not seen in years. Still, with Meta expected to spend roughly $125 billion on capital expenditures in 2026, it needs additional growth drivers to pick up the slack.
On the earnings call, Meta provided new details about its non-core ambitions. While AI-enabled advertising is powering the company today, these other initiatives are intended to drive future growth.
Reality Labs Reversal: Meta Sees Losses Peaking in 2026
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Bloomberg is calling it "the biggest listing of ALL TIME."
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Meta is reshaping Reality Labs to focus on investments with a clearer path to commercial success. In the earnings call, CEO Mark Zuckerberg de-emphasized the "metaverse" and highlighted the company's AI-enabled glasses, saying sales more than tripled in 2025. He added that most future Reality Labs investment will target glasses and other wearables.
As this pivot unfolds, Meta expects Reality Labs' losses to remain similar to last year but to peak in 2026. The segment has seen operating losses widen every year since Meta began reporting them.
Reality Labs lost $19.2 billion in 2025 — more than four times the $4.5 billion it lost in 2019. Another ~$19 billion loss in 2026 would still be a drag, but the company forecasting a stabilization of losses is a meaningful step.
That forecast, coupled with the increased emphasis on AI glasses, is not likely a coincidence. Smart glasses have a much larger addressable market than virtual reality headsets, and their broader appeal offers the only realistic path to shipping enough hardware to materially improve Reality Labs' profitability.
Despite the company saying AI glasses sales soared, total Reality Labs revenue rose less than 3% in 2025. Meta will need stronger revenue growth in 2026 to demonstrate that glasses can become a sustainable, long-term growth driver.
Business Messaging Revenue Soars, AI Drives Internal Efficiency
Another important non-core initiative is business messaging, where companies pay to communicate with users via direct messages, primarily on WhatsApp. This revenue is recorded in the company's "Family of Apps Other Revenue" line. That line grew 54% to $801 million, driven largely by WhatsApp paid messaging. While still a small slice of Meta's total revenue, business messaging is growing much faster than the overall business and could become increasingly important over time.
Meta also highlighted internal efficiency gains from AI.
It said that, largely due to AI coding tools, output per software engineer increased about 30%. Among AI-coding tool "power users," output jumped roughly 80%.
As Meta invests heavily in AI, reducing costs and boosting productivity with the same technology is critical. These early productivity gains suggest Meta is starting to find ways to do that.
Meta also said it will roll out new AI tools and models throughout 2026. While specifics remain limited, the company spotlighted its acquisition of Manus, noting that integrating Manus expands its customer solutions.
Zuckerberg suggested Manus could help create new business lines, though the exact form is unclear. One possibility would be a premium tier for Ads and Business Manager that includes Manus's capabilities. Overall, Manus could offer Meta another non-advertising pathway to monetize AI.
META: Building More AI Pillars Around Advertising
Meta's latest earnings report bought the company something it badly needed: time. With rising CapEx, Reality Labs losses, and underwhelming LLaMa model releases, the market had been growing impatient.
By showing AI is materially improving its core advertising business, Meta has eased some of that pressure. Investors will now expect progress on non-core initiatives during 2026 as the company works to capitalize on its five pillars for AI growth.
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