4 ms·
I wonder if all those declarations by Intel are just a game: Declare something big/interesting with tons of media etc - stock picks up by x%, than a few years
by petra 9y ago
I wonder if all those declarations by Intel are just a game: Declare something big/interesting with tons of media etc - stock picks up by x%, than a few years afterwards, cancel it without a fanfare, stock goes down by much less than x%. Intel wins. For those knowledgeable about the stock market, could it be the case ?
Because that would be a good explain why did Intel enter this field, which is is a very poor fit for it - unless they come with some breakthrough.
- jaymzcampbell 9y agoSpeaking of poor fits I'm still astounded they bought McAfee.
- euyyn 9y agoThe stock price is driven by what investors think the company is worth. For what you describe to work, investors would need to calculate that the investment Intel made here was profitable (via the sales made, for example), thus adding value to the company. At which point you couldn't really see it as a "game", but a good investment that was now ended.
- petra 9y agoThat's only one parts of what deteremines the stocks' worth. There's also predictions of future growth.
- euyyn 9y agoBut it's hard to see cancelling a product as a cause of growth.
- georgeecollins 9y agoCanceling an unsuccessful project can trigger a growth in profits.
- euyyn 9y agoDon't lose sight of the forest for the trees: OP's scenario is a strategy in which the project's start (with investment) causes a raise in valuation, and its premature cancellation a smaller decrease in valuation.