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After Hours: Qualcomm Hangups, the debut of Luckin Coffee

This week ended with a day of decline in the markets on Friday. The secondary market scene is also a bit laggy and gloomy, with the most actively traded stocks holding their prices or falling slightly.

Maybe many traders are busy planning their weekends or there hasn’t been enough stock movement news since the markets closed. Still, as always, there are a few places of interest, namely:

Image source: Getty Images.

Qualcomm quitters?

There was no earth-shattering news straight from the tech provider Qualcomm (NASDAQ: QCOM) today. Nevertheless, the stock is one of the most active issues in post-trade trading.

It may have something to do with the latest developments in the US-China trade war saga, where talks are at an impasse according to the latest media reports.

This could negatively affect Qualcomm. As a maker of cutting-edge modems for the upcoming 5G wireless standard, the company could suffer if it can’t sell its products effectively in China. On top of that, President Trump earlier signed an executive order to ban US companies from supplying components to Chinese tech giant Huawei, a notable Qualcomm customer.

I wouldn’t necessarily worry about these events if I was a shareholder, even if the dispute between the two countries drags on or Huawei’s ban persists. Either way, Qualcomm will reap the rewards of being an indispensable 5G player in the world. As well, Qualcomm’s recent settlement with Apple over an ongoing dispute between the two companies removed a real monkey from his back.

Qualcomm shares are down slightly at the time of this writing.

lucky lucky

Despite the underperformance of some stocks (hello, Lyft!), 2019 has so far been a very fertile year for initial public offerings (IPOs). This week ended with an important, for the China-based java-slinger lucky coffee (OTC:LKNC.Y). The stock began trading on Friday, ending the day nearly 20% higher than its opening price of $17 per share.

This is quite an accomplishment for such a young company. Luckin was founded less than two years ago and has already become the #2 coffee chain in its home market next, inevitably, Starbucks (NASDAQ:SBUX). Luckin is a technology and convenience-driven company that does well in the fast pace of major Chinese cities.

However, acquiring a large footprint quickly does not come cheap, and unlike the immensely profitable Starbucks, Luckin drips red on the bottom line. Still, China is a huge market with an insufficient supply of coffee (it’s traditionally a nation of tea drinkers), so there’s certainly plenty of opportunity for a young, motivated operator.

Now that the day one buzz is fading, moss could be settling on Luckin’s stock. Its stock price was cut nearly 2% in aftermarket trading. Interestingly, Starbucks shares are also down, albeit slightly.

Automatic avoidance

The rumors have now been confirmed: the Trump administration is delaying a final decision on auto tariffs by 180 days. Earlier this week, many media reported that such a decision would be made.

the the tariffs envisaged reach 25% on certain goods imported from countries such as Germany and Mexico. Opponents of the measure argue that it will also increase costs for US manufacturers and therefore be counterproductive.

Perhaps this contributes to a sense of relief – temporary or otherwise – among car manufacturing stock owners. FiatChrysler, headquartered in London, experienced a slight rise (1.5%) in its share price after the launch. Both Ford Motor Company and General Motors are up by more modest percentages.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a high-end advice service Motley Fool. We are heterogeneous! Challenging an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and wealthier.