There's a changing of the guard taking place in the market for touch controllers. Is it a foregone conclusion or just a temporary speed bump for the incumbent?
The market reaction to last night's earnings report from Synaptics
Some of the blame for that should fall on Apple
With that said, it's not all doom and gloom for Synaptics. The company more than measured up to analyst expectations on both the top and bottom lines, buoyed by the sliver of the mobile market that it's managed to capture. There might even be more room left to maneuver.
The trick to making this stock bounce back now lies in continued touchscreen gains. That's easier said than done when you consider the caliber of the competition, but then again shares of Atmel, Cypress, and Synaptics are priced as if Synaptics has already lost the war, died, and had its ashes strewn over Silicon Valley.
Do you see Synaptics drowning in insurmountable competition or rising to the challenge to earn fatter valuation multiples? Our CAPS community believes in a phoenix rising from the ashes of this five-star stock. Add your two cents to the discussion in the comments below.
Fool contributor Anders Bylund holds no position in any of the companies discussed here. Cypress Semiconductor is a Motley Fool Rule Breakers recommendation. Apple is a Motley Fool Stock Advisor selection. The Fool has written puts on Apple. The Fool owns shares of Apple and Texas Instruments. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. You can check out Anders' holdings and a concise bio if you like, and The Motley Fool is investors writing for investors.