INTC
Intel
$68.99 -25.1%
- Why
- Falling very sharply in early trading after a weak outlook for the current quarter overshadowed a profit beat, as a prolonged personal computer slowdown and limits on manufacturing capacity raised doubts about the pace of any recovery.
- Catalyst
- Q3 earnings reported October 29: adjusted profit of $0.52 a share on revenue of $16.50 billion beat the $0.40 estimate, but fourth quarter guidance pointed to profit of $0.25 a share on revenue of $15 billion to $16 billion, well below estimates of $0.43 to $0.44 and about $17.1 billion.
- Risk
- Management warned the personal computer slowdown could continue through at least the first half of 2027, so further demand weakness would cut revenue while heavy factory spending continues.
- Options angle
- Bearish lean, puts, 1 to 2 weeks, on the guidance miss and the warning that the computer slowdown lasts into next year; the fall is extreme, premiums are elevated, and a short covering rebound could be sharp.