Dialog Semiconductor Sends Mixed Signals; Takes Cirrus Logic Down 14%
A small $3 billion European company took down the entire tech sector in the US today when it missed its revenue and earnings numbers. How could such a small and foreign stock have such a large impact on the high flying technology companies? Dialog gets roughly 80% of its revenue from Apple, which is one metric that freaked out investors.
Suppliers like Cirrus Logic, Qorvo, Skyworks, Avago, and of course Apple, all took a massive hit on the pin action. However, can one small company really determine the fate of all the other ones in the sector? Perhaps Apple is simply doing less business with Dialog. Apple has already told investors that it is experiencing strong demand for it's new iPhone 6S, even from China. Skyworks has already stated that preliminary results are above Wall Street expectations. Perhaps these companies are better positioned than lonely Dialog semi which suffered a 20% haircut in today's trading.