Would You Still Hold InterDigital Stock If It Fell Another 30%?
InterDigital (IDCC) stock is down 11.9% in 21 trading days. The recent slide reflects concerns around forecasted declining earnings and licensing volatility, but sharp drops often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn resilience, let’s look at where InterDigital stands today.
- Size: InterDigital is an $8.0 Bil company with $929 Mil in revenue, currently trading at $309.00.
- Fundamentals: Last 12-month revenue growth of 28.8% and operating margin of 62.0%.
- Liquidity: Has a Debt to Equity ratio of 0.06 and a Cash to Assets ratio of 0.59
- Valuation: InterDigital stock is currently trading at a P/E multiple of 16.0 and a P/EBIT multiple of 13.0
- Has returned (median) 32.4% within a year following sharp dips since 2010. See IDCC Dip Buy Analysis.
These metrics point to a Very Strong operational performance, alongside Moderate valuation – making the stock Attractive. For details, see Buy or Sell IDCC Stock
That brings us to the key consideration for investors worried about this fall: how resilient is IDCC stock if markets turn south? This is where our downturn resilience framework comes in. Suppose IDCC stock falls another 20-30% to $216 – can investors comfortably hold on? Turns out, the stock saw an impact slightly worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- IDCC stock fell 52.5% from a high of $85.08 on 8 June 2021 to $40.42 on 30 September 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 6 June 2023
- Since then, the stock increased to a high of $396.54 on 3 November 2025 , and currently trades at $309.00
| IDCC | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -52.5% | -25.4% |
| Time to Full Recovery | 249 days | 464 days |
2020 Covid Pandemic
- IDCC stock fell 46.9% from a high of $63.39 on 20 February 2020 to $33.65 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 6 August 2020
| IDCC | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -46.9% | -33.9% |
| Time to Full Recovery | 141 days | 148 days |
2018 Correction
- IDCC stock fell 53.7% from a high of $101.75 on 21 February 2017 to $47.13 on 23 August 2019 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 4 December 2023
| IDCC | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -53.7% | -19.8% |
| Time to Full Recovery | 1,564 days | 120 days |
2008 Global Financial Crisis
- IDCC stock fell 53.5% from a high of $35.62 on 22 February 2007 to $16.56 on 6 March 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 8 November 2010
| IDCC | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -53.5% | -56.8% |
| Time to Full Recovery | 977 days | 1,480 days |
Feeling jittery about IDCC stock? Consider portfolio approach.
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