Is This New Partnership Good for QUALCOMM, Inc. (QCOM) Stock?

QUALCOMM, Inc. (NASDAQ:QCOM)’s stake in the joint venture is estimated to be under 5% — meaning that there shouldn’t be too much investor concern that Qualcomm could be hurt by Alcatel Lucent SA (ADR) (NYSE:ALU)’s current poor performance. Going forward, investors should keep an eye on which telecommunications companies Qualcomm and Alcatel provide small cells for and what magnitude the deals are. Qualcomm investors should also be looking for which new partnerships Alcatel makes and how it might help the small-cell partnership. I wouldn’t make a bet on Qualcomm simply based on the new partnership, but when the small-cell business is added to Qualcomm’s chipset business and royalty revenues, it shows the company is focused on remaining a strong contender in the growing mobile industry.

Fool contributor Chris Neiger has no position in any stocks mentioned. The Motley Fool owns shares of Lazard and Qualcomm.

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