TrendsWide
Contact US
  • Home
  • Trending
  • Health
  • Life Style
  • NBA
  • Reviews
No Result
View All Result
TrendsWide
  • Home
  • Trending
  • Health
  • Life Style
  • NBA
  • Reviews
No Result
View All Result
TrendsWide
No Result
View All Result
Home Economie

What to do with Intel’s stock after Friday’s plunge?

by souhaib
October 24, 2020
in Economie
0
74
SHARES
1.2k
VIEWS
Share on FacebookShare on Twitter
ADVERTISEMENT


You might also like

‘momentum is continuing into 2022’

Astra Space stock closed down 20% on Monday: here’s why

Ripple, Dogecoin, Litecoin price forecast for February 2022

  • Intel’s stock fell 10% after two concerning read outs from its Q3 report.
  • One pro argues Intel has historically navigated through “rough patches.”
  • Another higlights Intel’s 3 problems as reason to avoid the stock.

Shares of Intel Corporation (NASDAQ: INTC) fell more than 10% on Friday after the tech giant’s third quarter report showed a 7% revenue decline in its data center business and management said its new 7-nanometer processors will be delayed by six months.

Should investors buy Intel’s stock after recent weakness or is there more downside ahead? These two pros offered both sides of the argument.


Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

Fund manager: No reason to sell

Jenny Harrington is the CEO of Gilman Hill Asset Management and she said on CNBC’s “Halftime Report” she not only isn’t a seller of Intel’s stock but she regrets not buying more. Intel’s stock is a victim of investors overly focused on the short-term and the upcoming “rough patch” should be taken advantage of.

From a historical perspective, Intel always rebounds from a “rough patch” and this time is no different as it will figure out a path to growth. Management displayed a willingness to re-evaluate its entire business operation, including acknowledging it lost an edge in manufacturing and it will outsource production.

Harrington said she is looking forward to three years down the road and she is “quite certain” her existing stake in Intel will generate a profit. After all, the company still generates a “ton of money” today.

Here is a helpful guide to better determine if you should buy Intel’s stock.

Analyst: Three key problems

Intel faces three notable challenges in the near-term and a bearish stance on the stock is now appropriate, Bank of America analyst Vivek Arya separately told CNBC. First, management has no concrete plan on the table to fix its manufacturing problems. Until there is a plan, its manufacturing process faces lower yields and higher costs.

The second major problem Intel faces is the competitive environment from rivals like AMD and others are intensifying, the analyst said. Other foes like Taiwan Semiconductors are now “a couple of years ahead” of Intel.

Third, despite recent momentum in the PC and data center market, Intel’s overall revenue mix towards these segments are weak and unfavorable. This contrasts with the historical norm where Intel’s exposure to the enterprise-focused segment is strong and very profitable.

These three problems will “keep a lid on the stock,” he said. In some ways, the new management team led by CEO Bob Swan who took over in early 2019 inherited these issues. Intel is proof that if a company fails to “move ahead” it will “fall behind.”

Finally, the analyst has some advice for Intel: focus on “what you do best” instead of “trying to be good at everything.”



Source link

Share this:

  • Twitter
  • Facebook
  • More
  • Pinterest
  • Telegram
  • Email
Share30Tweet19
Previous Post

Legendary Jackson State football coach W.C. Gorden dies at 90

Next Post

Wales lockdown: Supermarket petition tops 25,000 signatures

souhaib

Recommended For You

‘momentum is continuing into 2022’

by souhaib
February 7, 2022
0

Shares of Chegg Inc (NYSE: CHGG) are up 10% in extended trading on Monday after the student services company said it performed better-than-expected in Q4, despite COVID-19 uncertainty....

Read more

Astra Space stock closed down 20% on Monday: here’s why

by souhaib
February 7, 2022
0

Read more

Ripple, Dogecoin, Litecoin price forecast for February 2022

by souhaib
February 7, 2022
0

The cryptocurrency market is advancing this Monday, and this situation also supports the price of Ripple XRP/USD, Dogecoin DOGE/USD, and Litecoin LTC/USD. Bitcoin is trading above the $44,000...

Read more

Analyst: ‘Apple would be forced into it if Amazon goes after Peloton’

by souhaib
February 7, 2022
0

Read more

Should I buy Uber shares in February 2022?

by souhaib
February 7, 2022
0

Uber Technologies, Inc. (NYSE: UBER) will announce fourth-quarter earnings results this Wednesday, February 09, after the market closes. Uber shares have weakened more than 10% since the beginning...

Read more
Next Post

Wales lockdown: Supermarket petition tops 25,000 signatures

No Result
View All Result

Recent Posts

  • How do Movers can aid you in shifting?
  • Nelson Piquet is accused of committing a racial crime from Lewis Hamilton with his N-term slur
  • NBA: Stephen Curry and his most incredible shooting display Is it an alien?
  • Last minute of the war in Ukraine, live | Ukraine acknowledges that “it is likely” that Russian forces will take over the key city of Lisichansk
  • Matthew Bogdanos, the tireless vigilante of stolen cultural property

Browse by Category

  • Australia
  • Automotive
  • Business
  • Celebrity
  • Cryptocurrency
  • Deals
  • Economie
  • Education
  • Euro
  • Forex
  • Gaming
  • Health
  • Life Style
  • NBA
  • News
  • Reviews
  • Sports
  • Switzerland
  • Trending
  • U.S.
  • Uncategorized

Categories

  • Australia
  • Automotive
  • Business
  • Celebrity
  • Cryptocurrency
  • Deals
  • Economie
  • Education
  • Euro
  • Forex
  • Gaming
  • Health
  • Life Style
  • NBA
  • News
  • Reviews
  • Sports
  • Switzerland
  • Trending
  • U.S.
  • Uncategorized

Pages

  • Contact US
  • Newsletter
  • Privacy Policy
  • Terms & Conditions

© 2021 - TrendsWide

No Result
View All Result
  • Home
  • Contact US
  • Privacy Policy
  • Trending
  • U.S.
  • Economie
  • Deals
  • Reviews
  • Cryptocurrency
  • Health
  • Life Style
  • NBA

© 2021 - TrendsWide