Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

Intel stock down after disappointing Q4 earnings

Intel shares are down after a Q4 revenue miss.

Intel stock dropped after a fourth quarter earnings report that missed estimates. The semiconductor company’s shares are plummeting down 3%.

Why is Intel stock down?

Intel has struggled for the last few months since the company is without a chief executive officer(CEO) since, Brian Krzanich, was forced out seven months ago for having a relationship with an employee. The corporation’s revenue was $18.66 billion, less than the $17.05 billion that Wall Street expected.

Interim CEO, Bob Swan, said that the US-China trade war also had an impact on Intel’s profits.

‘Since that time trade and macro concerns, especially in China, have intensified’, said Swan.

In addition to not having a CEO, the corporation has struggled because of sluggish sales in China. Its cloud provider server chips have declined in sales.

‘Cloud service providers shifted from building capacity to absorbing capacity and the NAND[technology] pricing environment has further deteriorated. Those incremental headwinds are impacting our revenue expectations and slightly reducing our operating margin percentage forecast,’ said Swan.

Intel was also indirectly impacted by Apple’s weak Q1 guidance. The corporation gets most of its modem revenue from Apple, and the modem revenue declined by $200 million.

What’s next for Intel stock?

Despite the negative news about Intel stock, Swan is optimistic that the tides will turn once there is a new CEO.

‘I'm convinced the board will close on its new CEO in the near future, said Swan. He asserted that Intel employees ‘will not be distracted by the void’.

Jeffries Financial Group is less optimistic about Intel’s profits in the future.

‘We are bullish on semis in part because consolidation is driving pricing power and higher margins, but we think the opposite will happen to Intel over the next 12-to-24 months’, said Jefferies Financial Group.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Act on share opportunities today

Go long or short on thousands of international stocks with spread bets and CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.