They sold Xscale, they sold their modem division (admittedly it was terrible, but I refuse to believe it was unfixable, certainly Apple didn't).
This creates hesitation in prospective customers of anything which isn't their mainstream CPU business, reducing them to a one trick pony. And that pony is now having its lunch eaten from both below (ARM) and above (Epyc).
Their operating profit and their reserves mean little if prices go down - they are used to fat, lofty margins and I'm not sure they still know how to execute without them.
Think about what happens to the shale oil businesses once crude prices approach their extraction costs. You implode very quickly no matter how big you are.
And Intel's cost of business is incredibly high. Semiconductor fabs are some of the most expensive factories in the world.
Intel is in danger of becoming General Motors, a company that sat by idly while competitors made them obsolete.
The problem is all those people writing financial pornography about the stock market. That can give you the impression that there is more to the stock price than that.
Sure they need some cashflow (after all, nobody wants to buy a bankrupt company) but to believe the stock value is a straightforward formula based on cashflows isn’t how the market works. Otherwise Amazon would have plummeted in price long ago.
Not if they sell it to someone else for a higher price.
Telsa is not going to go bankrupt in the near- or medium-term. There's just too damn much money backing them.
Ford, GM, FCA have a thin wedge of the market that is still profitable for them and that market is under attack, with little indication of them being able to make a huge splash in another market. Not to mention a broader shift in car market and transportation that requires massive investment.
If you don't grow, don't make much profit and are risky, meaning a couple of bad quarters almost kill you your stock is not gone be worth much.
As far as i know intel has/had plenty of reserves and is still selling good.
The Demand in general is very high.
Doyou have any numbers?
It’s currently $4.
You can be a dead man walking even while your financials are fine.
The iPhone was a one-in-a-generation product that upended an industry. Yet I see 10 products being compared to it a week.
It may sound cynical to people here, but in the long-run, you'll do a lot better thinking "this is probably not the next iPhone" than having FOMO that every second tech company might be the next Apple.
One deals with concrete things, other deals with speculation.
These valuations are references of the stock market - it's almost a measure of popularity, than anything else. Right?
You know, just a trillion dollars in sales give or take. I'm sure Tesla will get there sometime this century.
Intel has $25 billion in operating income the last four quarters (~73% increase in three years). nVidia has $3.4 billion in operating income the last four quarters. Yeah but nVidia is growing fast, right? Nope, they're growing modestly. How long will it take for nVidia to get to $25b in operating income? 15 years if everything goes perfectly?
It's certainly up to the reader to judge whether these spectacular valuations are due to the stock market bubble, or if... you know... it's different this time, it's the new economy, cloud!, or whatever bullshit is being spun this time around.