Intel fell 29% on Friday. ,It was the stock's worst one-day performance since 1974., The Pet Rock was still a hot item in 1975.
Analysts have thoughts. ,Bank of America, Roth Capital Partners and Seaport Research Partners all downgraded to neutral from buy., Notice the timing. Nobody downgraded at the top. They waited for the stock to fall 29% so they could warn you about heights.
Neutral is the analyst version of a shrug emoji. It costs $400 an hour.
,JPMorgan and Goldman Sachs held their neutral ratings and lowered their price targets., That's like a lifeguard lowering his estimate of how wet the pool is while you're underwater.
The retail crowd sees $65 and hears a sale. Intel ,was up about 150% this year heading into earnings., Some tallies had it near 250%. You didn't buy a dip. You bought a staircase and you're surprised by the landing.
The cause was a weak outlook. ,Intel forecast Q4 revenue of $15 to $16 billion, while analysts had expected about $17 billion., The data center business ,grew 78% in the third quarter,, and the stock still lost nearly a third of its value. That's a good quarter getting you punched in the face.
The government took a hit too. ,Washington's 10% stake dropped by about $12 billion on Friday., Your portfolio and the federal government now share a hobby.
CNBC says buying works if you have a long investing horizon. Translation: be patient, or at least be dead before the statement arrives.
Buy the dip if you like. Intel will hold your money the way it holds server chip supply: not enough of it, and nobody knows until 2027.
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