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Because debt was cheap. Easy to keep it on balance sheet a few % rather than give it to shareholders. Remember, for the decade before this point INTC was throw
by Panzer04 2y ago
Because debt was cheap. Easy to keep it on balance sheet a few % rather than give it to shareholders.
Remember, for the decade before this point INTC was throwing off 20B+ profits every year. They've had a couple of bad results recently, and everyone is ready to throw them off a cliff.
People are, in general, very sensitive to the most recent news when it comes to stocks. They will extrapolate what happened over the last year out into the next decade and say X is dead or X is going to rule the world (Intel, Nvidia respectively).
- lotsofpulp 2y agoHow often do business reclaim the top spot? The pessimism is because Intel is behind by tens of billions of dollars, and more importantly, years. Many years. Effecting management change and developing the right workforce with the right expertise is not a given, even if they were previously earning $20B net income per year. One could easily say this is the business with the highest barriers to entry in the world (hence the highest profit margins and profits in the world).
- crowcroft 2y agoYea, Intel is more than 50 years old, they’re a mature player in decline. They look more like IBM than Apple.