Intel fell 14% from last night’s, that’s the reason – the capital market

An increase for a 14% reduction for Intel (

INTEL CORPORATION
-8.53%

closure:0

opening:58.85

Tall:59.62

low:56.94

cycle:–

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): After the brief paragon yesterday with the publication of the fourth quarter reports, it seems that investors are not satisfied with the company’s forecast for the current quarter. The company topped forecasts in the fourth quarter of 2020 and investors raised the stock in late trading by 6.5% initially, to $ 66.5, but later these were replaced by declines that continued today in pre-game and now in trading itself, where Intel falls 8%.

First to the numbers: The bottom line is that the company posted a profit of $ 1.52, compared to a forecast of $ 1.10. Revenue was $ 20 billion, compared to a forecast of $ 17.49 billion. Intel will also distribute cash at $ 1.39 per share at a rate of 5%.

So what does the company expect for the current quarter? Revenue of $ 18.6 billion and earnings of $ 1.03 per share – that is, a decrease from quarter to quarter in the top line as well as the bottom line. The explanation may lie in the fact that the good results in the past quarter were due, according to the company, to the increase in demand for laptops and desktops against the background of the move to remote work following the Corona. It makes sense that as the virus continues to spread around the world, the trend will weaken.

As is well known, Intel not only develops chips, but also manufactures them, and against this background it is experiencing tough competition from AMD, NVIDIA, Taiwanese TMSC and other manufacturers from China. Market expectations are that Intel will abandon production activity, and to pressure it to act in this direction, activist investor, hedge fund manager Dan Loeb, bought the company’s shares for about $ 1 billion.

To see if Intel contracts to make up for this decline in the rest of 2021, investors will have to wait for the first quarter reports for the year – and then also find out if Intel’s forecast for it has met reality. Forecasts for the entire year will be affected by the new direction outlined by CEO Pat Glasinger, who will take office in mid-February. $ 70 target. It is now trading at $ 57.