But surprise. Intel beat its numbers. And all the focus was on negative headlines. Yahoo picked up the story from Alleyinsider and cross-posted the gloom on at least 7 of their different tech ticker channels:
http://finance.yahoo.com/tech-ticker/Investing
http://finance.yahoo.com/tech-ticker/Computers
http://finance.yahoo.com/tech-ticker/Data-Storage
http://finance.yahoo.com/tech-ticker/Networking-and-Communication
http://finance.yahoo.com/tech-ticker/Products-and-Trends
http://finance.yahoo.com/tech-ticker/Recession
http://finance.yahoo.com/tech-ticker/article/159349/Intel-Profit-Plunges-90-Percent-on-Miserable-Demand
The market however in after hours trading shrugged off the headlines. And INTC turned higher.
It is tired of this same old drum beat. What was more salient news earlier in the week was that despite recent predictions that the company might be cutting another 6,000 employees from its payroll, Intel has clarified that no new job cuts are coming or required. Additionally management fully expects margins to bounce back to "healthy" levels by the second half of 2009.Perhaps management at Intel has indeed taken note of the fact that even though we had the big credit freeze in October, that in November we saw an incredible 12.5% rise in orders for computer products, and a 5.7% increase in orders for information technology goods. (See Leading Indicators)
That seems to bode well for chips to me. And the after hours market agrees.
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I heard from an insider that Intel plans on pushing ahead with R&D that will put it ahead of the job-cutting pack when the economy rebounds. They'll have better and faster products than the competition.
ReplyDeleteI say that if they can make money in this terrible cycle that they'll make it hand-and-fist at the top of the cycle. Go Intel -- a great American company.
Yes, I really admire their management team. They have the guts and the knowledge to run their business on something other than quarter to quarter street expectations.
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