For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in InterDigital (
IDCC Quick Quote IDCC - Free Report) ten years ago? It may not have been easy to hold on to IDCC for all that time, but if you did, how much would your investment be worth today? InterDigital's Business In-Depth
With that in mind, let's take a look at InterDigital's main business drivers.
Headquartered in Wilmington, DE, InterDigital, Inc. is a pioneer in advanced mobile technologies that enables wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks.
Furthermore, the company’s team of skilled engineers has an expertise in major mobile connectivity as well as in technologies related to content delivery. Notably, InterDigital’s secure and scalable horizontal platform, oneMPOWER, enables businesses to launch and manage Internet of Things (IoT) applications. The company also provides video encoding and transmission technologies while conducting fundamental research into video coding, IoT, smart home, imaging sciences, augmented reality and virtual reality, and artificial intelligence and machine learning technologies. The patented technologies of the company are used in several products like mobile devices, wireless infrastructure equipment as well as IoT devices and software platforms.
InterDigital derives revenues primarily from patent licensing, with contributions from patent sales, product sales, technology solutions licensing, and sales and engineering services. It has one of the most significant patent portfolios in the wireless and video industries. The company reports under a single operating segment.
The company has incorporated high quality video and artificial intelligence (AI) research team along with an established portfolio of video expertise to expand its footprint in wireless and video technologies and consumer electronics. InterDigital actively contributes to the technical development of standards pertaining to digital cellular and wireless communications and other technologies. Leveraging economies of scale and interoperability functions, these standards provide detailed specifications for wireless communications products and systems. Moreover, the standardization process benefits both implementers and consumers as it encourages the development of ideas and technical solutions that result in innovative standards.
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in InterDigital ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in November 2013 would be worth $3,037.70, or a 203.77% gain, as of November 27, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 152.63% and the price of gold increased 54.01% over the same time frame in comparison.
Analysts are forecasting more upside for IDCC too.
InterDigital reported solid third-quarter 2023 results, with both the bottom line and top line surpassing the respective Zacks Consensus Estimate. The company is benefiting from healthy demand trends in the CE, loT/Auto and smartphone markets. Improvement in catch-up revenues driven by new patent license agreements is a tailwind. Initiatives to expedite research in advanced 5G and 6G networks will likely boost prospects. Collaboration with IIT Kanpur will focus on advanced MIMO system development that will support high-bandwidth-intensive applications and enable ultra-low latency communications. Efforts to optimize its strength in the core wireless licensing business and steps to drive shareholder value are positive factors. However, substantial competitive pressure and rising operating costs are straining margins. A high debt burden is a concern.
Over the past four weeks, shares have rallied 31.98%, and there have been 2 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.