Tag Archives: economy

Intel Stock Plummets as CHIPS Act Passes the House

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Dave: Intel just reported second quarter earnings after the bell. Yahoo Finance’s Jared Blikre, here on the same day that the CHIPS Act passes the House, which really benefits Intel, and shares are plummeting, Jared.

Jared: Dave, ironic that there is no boost from that. Let’s take a look at the numbers because I actually… Let me begin with a quote from the CEO Pat Gelsinger. Gelsinger, “We must, and will, do better.” And we’re gonna go over those numbers. See if they can improve upon them. Adjusted EPS for the second quarter coming in at 29 cents. The estimate was for double that, 69 cents. More than double that. And then, just going down the numbers, client computing revenue 7.7 billion.

The estimate was for 8.8 billion. Data Center, 4.6 billion, estimate 6.4 billion.
Now on to the forecast. This is where it gets a little bit scary. Seeing adjusted revenue of 65 to $68 billion. Previously, they saw 76. The estimate on Wall Street was about 74 and three quarters billion. Also they are seeing adjusted EPS of 2.3 dollars, $2.30. Previously, they saw $3.60. Estimate was for $3.39. Adjusted gross margin for the full year seeing 49% and the estimate was for higher at 51.8%.

Finally, capital expenditures, $23 billion, whereas before they saw 27 billion. The Street had an estimate a little bit lower than that. They are in the midst of a turnaround strategy right now. And execution wise, we gotta wonder if this is just an idiosyncratic story or if this is just about the industry as a whole.

I want to go to the YFi Interactive, and we’re seeing the shares down about nine, 10% right now. Actually,7 3/4, but let’s check out a year-to-date chart, is down 23%. CHIPS being very highly levered to the economy. We did get that negative GDP print earlier today. That’s backwards looking, but everybody wants to know, are people still buying chips and are our manufacturers able to deliver them to market?

Bitcoin Trades Below $23,000 Following ECB Rate Hike

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EXCERPT: Welcome back to Yahoo Finance Live. Let’s take a look at the YFi Interactive to get a check on how the cryptos are doing this morning. You can see it is, yikes, spread across the board.

We take a look at the Etherium down 6% intraday. We also take a look at the big fish over here. That is, of course, Bitcoin down 6 1/2%. Down to about 22,600. Although, that is still far above where we were when you consider how far we went down in 2022.

But, of course, all this action coming after Tesla reported earnings yesterday. And Elon Musk’s company dipping 75% of its Bitcoin holdings out of crypto and into Fiat. Again, I mean, I don’t know if it’s a good thing that we’re talking about car companies and and their Bitcoin holdings, but that was pretty notable from yesterday.

Earnings are showing a Fair Amount of Strength

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Speaker 1: There’s a lot to unpack in this market, but just broadly speaking, wondering how you’re viewing the earnings that we’ve gotten so far. Again, we’re very early into this earnings season. We’ve got the banks and we’ve got some of these large companies like Tesla reporting and hitting the tape as well. Any noticeable trends that you’re seeing?

Speaker 2: Well, I think when we take a look at earnings across the board, for the most part, we’re seeing a fair amount of strength. And I think investors coming into this earnings season were concerned about the deceleration and growth, and we’re seeing it, but it’s not nearly as bad as feared.

Right now, we’re going to expect EPS to finish this quarter, up around 9%. And it’s coming from sales growth that’s 13 to 14%. That’s a big number. A part of that margin contraction is coming from financials. So it’s not broad-base. There are certain groups which we’re seeing that margin pressure, but generally speaking, we’re seeing a fair amount of strength across the board. I think banks is one area where we’re seeing a little bit more increase in reserves, and I think investors are looking ahead to see if there is recessionary impulses in that process. But for the most part, we’re feeling comfortable with this coming earnings season.