Last Friday, the Borqs Technologies (NASDAQ:BRQS) stock was in the middle of a strong selloff and ended up with a decline of as much as 8% as a consequence.
On Friday, BRQS stock ended down by 8% to $0.33 with more than 62.11 million shares, compared to its average volume of 21.65 million shares. The stock moved within a range of $0.2900 – 0.3500 after opening trade at $0.3250.
Borqs Technologies Has Successfully Purchased 5G License with Qualcomm
However, at the same time, it ought to be noted that the stock had been in the middle of a major upward move up until then and is still up by 55%. In this context, it may be a good idea for investors to consider taking a look at news from April 14 when it was announced that Borqs Technologies had managed to tie up a licensing deal with the tech giant Qualcomm (NASDAQ:QCOM).
The licensing deal with Qualcomm is also inclusive of a patent licencing deal with regards to 5G. As per the terms of the agreement, Borqs Technologies would have the rights to manufacture and design 5G related products on the basis of Qualcomm’s technologies. It goes without saying that such a deal with such a major company was a major milestone for Borqs Technologies and perhaps it was no surprise that the stock enjoyed such a strong rally. While it is true that the stock corrected on Friday, it will be interesting to see if it can make another upward move today.
BRQS stock is trading above the 20-Day and 50-Day Moving averages of $0.25 and $0.27 respectively. However, the stock is trading below the 200-Day moving average of $0.51.