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Intel's stock drops 30% overnight —company sheds $39 billion in market cap | As of now, Intel's market value is a fraction of Nvidia's worth and less than half of AMD's (www.tomshardware.com)

submitted 4 months ago by ForgottenFlux to c/technology

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Intel's stock dropped around 30% overnight, shaving some $39 billion from the company's market capitalization since rumors of a pending layoff first emerged. The devastating results come after the chip giant reported a loss for the second quarter, complained about yield issues with the Meteor Lake CPU, provided a modest business outlook for the next few quarters, and announced plans to lay off 15,000 people worldwide.

When the NYSE closed on July 31, Intel's market capitalization was $130.86 billion. Then, a report about Intel's massive layoffs was published, and the company's market capitalization dropped sharply to $123.96 billion on August 1. Following Intel's financial report yesterday, the company's capitalization dropped to $91.86 billion. Essentially, Intel has lost half of its capitalization since January. As of now, Intel's market value is a fraction of Nvidia's worth and less than half of AMD's.

As Intel's actions look rather desperate, analysts believe that Intel's challenges are existential. "Intel's issues are now approaching the existential," Stacy Rasgon, an analyst with Bernstein, told Reuters.

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[–] [email protected] 0 points 4 months ago (1 children)

Those small handful of people also want to make as much money as possible though, so typically their goals will align with yours as a shareholder.

[–] [email protected] 2 points 4 months ago* (last edited 4 months ago)

Not if they disagree with a business strategy on profit potential, moral/ethical ramifications, debt management, buying out another business, doing a stock split or stock buyback, where to source a needed material or service from, whether or not to massively raise executive compensation, environmental concerns, or if they're going to get fucked by a hostile takeover, or being acquired by a private equity firm, maybe they do want to outsource some part of this business or spin off a part, maybe they don't...

You say that as if its just always immediately obvious to everyone what the correct path is, and that the primary focus of that path should be to maximize profit, which in and of itself is a bad assumption on its face and is also a matter of contention: do you want to keep doing bandaid solutions to ensure short term profitability, or do you want to cut back on profitability for a year to shore up your market position or develop a new branch of the business, or engage in a capital intensive plan that will likely guarantee profit in the long term?

Businesses are a bit more complicated than 'the richest guys always agree and always know how to make the mostest money and they would never ever have conflicting opinions or interests with me!'