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By cost cutting measures, replacing the unrealistic dividends phase.. I have no idea why a ex-monopoly taking every action it can think of for accelerating its

By cost cutting measures, replacing the unrealistic dividends phase.. I have no idea why a ex-monopoly taking every action it can think of for accelerating its descent in market share would be seen positively for getting to barely profitable by steps that are no doubt sacrificing future sales.

atomicnumber3 3y ago
The market is weird. It might have jumped because the market was pricing in a faster decline and it beat expectations, causing a correction. It could also be because earnings reports are times of higher volatility for a stock, and people will use derivatives to make certain bets around it. And then the earnings results can cause them to take decisive action to exit those positions, which might not be happening in the spot market but the spot market can feel the ripple effects of big movements in derivatives. Or maybe a bunch of meme investors are buying intel because it had good news and there's nothing more sophisticated than that. The market is weird, and it's especially weird on short time scales. Let's wait a week and see where they land.
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dwallin 3y ago
Because much of investor behavior is (arguably rationally) not driven by business fundamentals, but how they assume other investors will act. This can lead to counterintuitive and self-fulfilling group think behavior where the metrics might drive the stock price because of an incorrect perception that others value that metric, regardless of actual sentiment.
downrightmike 3y ago
They've been promoting MBAs to leadership for years, it lead to the down turn and apparently they've figured out a new financial gimmick.
rossdavidh 3y ago
Taking devil's advocate position here: 1) dividend was not (any longer?) rational, since they needed to reinvest in production process improvements; this is therefore a good CEO decision, which gives confidence to stock owners that CEO can do what needs to be done 2) "five nodes in four years", i.e. acceleration to catch up in process capability, is said to be on track, which (if actually true) is good news 3) this was the "pain for future gain" part of Gelsinger's turnaround plan, so if they can actually make a profit even during this phase, that is good news Not sure if I believe any of this, but that's my take on why it might be reason to buy the stock. Not that I am, in fact, actually buying the stock.

atomicnumber3 3y ago

The market is weird. It might have jumped because the market was pricing in a faster decline and it beat expectations, causing a correction. It could also be because earnings reports are times of higher volatility for a stock, and people will use derivatives to make certain bets around it. And then the earnings results can cause them to take decisive action to exit those positions, which might not be happening in the spot market but the spot market can feel the ripple effects of big movements in derivatives. Or maybe a bunch of meme investors are buying intel because it had good news and there's nothing more sophisticated than that. The market is weird, and it's especially weird on short time scales. Let's wait a week and see where they land.

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dwallin 3y ago

Because much of investor behavior is (arguably rationally) not driven by business fundamentals, but how they assume other investors will act. This can lead to counterintuitive and self-fulfilling group think behavior where the metrics might drive the stock price because of an incorrect perception that others value that metric, regardless of actual sentiment.

downrightmike 3y ago

They've been promoting MBAs to leadership for years, it lead to the down turn and apparently they've figured out a new financial gimmick.

rossdavidh 3y ago

Taking devil's advocate position here: 1) dividend was not (any longer?) rational, since they needed to reinvest in production process improvements; this is therefore a good CEO decision, which gives confidence to stock owners that CEO can do what needs to be done 2) "five nodes in four years", i.e. acceleration to catch up in process capability, is said to be on track, which (if actually true) is good news 3) this was the "pain for future gain" part of Gelsinger's turnaround plan, so if they can actually make a profit even during this phase, that is good news Not sure if I believe any of this, but that's my take on why it might be reason to buy the stock. Not that I am, in fact, actually buying the stock.