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Intel to Cut 12,000 Jobs, Forecast Misses Amid PC Blight

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Re: Intel to Cut 12,000 Jobs, Forecast Misses Amid PC Blight

#221

Post by thecourier »

jules wrote: post #148
tma-1 wrote: post #39

So Intel is cutting 11% of its workforce, Goldman Sachs just reported a 56% drop in profits, Morgan Stanley had a 50% drop in profits, Netflix missed subscriber growth estimates etc... yet, the Dow just hit a 9-Month high, and the S&P500 is now above 2100. The whole market is overvalued, not just the tech unicorns.

How can the whole market be overvalued? Prices are relative, no?

it works like this: Imagine you have a huge amount of money, enough to buy whole companies like Apple, Coca Cola and Walmart. you want to keep your money and even make it grow, so you're looking for good businesses to buy.

I have one company for sale at USD329 billions, it grows 50%-100% a year for now and currently generates USD3.29 billions

I have another company for sale at USD219 billions, it is shrinking at 1.4% a year and currently generates USD14.69 billions

And finally I have another company for sale at USD200 billions, it is growing/shrinking between -8% and 60% a year and generates USD7.35B

Most people prefer the second one, who makes you a good 7% return a year. the first one looks good, but will take at least 6 years to be as good as the second and the last one is so so. the companies where 1) Facebook 2) Walmart and 3) Coca cola. (we're ignoring how much assets and liabilities they have for simplicity)

And as you see, even when facebook has a promising future, we don't know if it will reach a good value/margin level as walmart. so we may agree it's overvalued at is current price.

Hope this shed some light, I'm not a trader or something, so this info is very simplistic

P.D.: this analysis is called Fundamental Analysis, you can go deeper and honestly it has worked very well in my portafolio. I bought stock in Gerdau (GGB), a brazilian steel company, because I studied as a whole business and discover it was priced very low. that was starting in November, I bought those stocks at 1.22 and recently they reached 2.44. I basically duplicated my money in 6 months. Remember stocks aren't just tickets, they are little parts of a big business.

Re: Intel to Cut 12,000 Jobs, Forecast Misses Amid PC Blight

#222

Post by tyingq »

aluminussoma wrote: post #196
mattbillenstein wrote: post #178

Large enterprise companies like this can lay off 10% anytime they want with little effect on output -- there are oodles of people slacking in big corporations basically not doing much of anything except collecting a paycheck.

And do you think these same companies are just as efficient as identifying who's slacking off? I don't think so. They may know that 10% of the company is slacking off, but they often end up amputating a hand when they meant to just trim the fingernails.

A very common approach is giving every front-line leader the 10% target, rather than trying to actually trim the actual bottom 10% from a performance standpoint. Results are as you would imagine.

Re: Intel to Cut 12,000 Jobs, Forecast Misses Amid PC Blight

#223

Post by noir_lord »

mark-r wrote: post #138
robertelder wrote: post #38

I'm not sure how much of an effect this would have, but from a consumer's point of view, there isn't as much of a reason to buy a new PC every few years anymore. The laptop I'm using right now was purchased in 2011, and the prices in stores now are very comparable to what I paid back then. I've made up my mind to buy a new one a few times, but then when I go to the store, it just isn't worth it.

Moore's law may become irrelevant long before it becomes invalid. Without rapid increases in usable computing power, the reasons for upgrading have largely disappeared. In particular the chips at the top of the profit margin curve, where Intel loves to play, are much less compelling. Intel might eventually find itself in the same shoes Kodak did - when your primary business dries up, there's unlikely to be a follow-o…

I'm not convinced that moores law has ended (using the processing power doubles not transistor count doubles).

We've hit the physical limits of our current processes but we haven't remotely hit the physical limits of..well physics.

It's possible that we are on the flat before the next curve starts whether that curve will reach the consumer space I don't know but at the top end of computing (supercomputers) there is still massive demand for more processing power.

Re: Intel to Cut 12,000 Jobs, Forecast Misses Amid PC Blight

#224

Post by testic »

dragandj wrote: post #198
jernfrost wrote: post #109

Earlier quoted context omitted.

Exactly the tech industry has been incapable of coming out with new functionality that really requires more power. The only thing I can see which is going to benefit a lot from CPU power is more advance AI or machine learning built in. But we are only seeing very gradual moves in this area now. VR and Games are also candidates of course, but most people aren't hard core gamers. They are fine with Angry Birds ;-) And…

The problem for Intel is that AI and machine learning are going to be typically done on the GPU. So, Nvidia. Also, a chance for AMD to recover.

Yep, Moore's law is still going on strong in GPUs.

Re: Intel to Cut 12,000 Jobs, Forecast Misses Amid PC Blight

#225

Post by sitic »

ececconi wrote: post #80
anilshanbhag wrote: post #20

One must understand that this is re-structuring. Intel is probably letting go of some divisions it no longer intends to pursue. In the not-so-distant past, Microsoft did an internal re-structuring when Satya Nadella became the CEO. It isn't as bad as it is portrayed to be as most people end up getting re-hired in other groups or take the severance and join a new company.

I doubt with the CFO being let go most people will end up getting re-hired in other groups. Their revenues are down, they're closing up shop in some areas or realizing they need to run some areas with less people. It's actually a pretty big deal.

Intels profit has grown 3 percent and their revenue is up 7 percent compared to same quarter a year ago.

Re: Intel to Cut 12,000 Jobs, Forecast Misses Amid PC Blight

#226

Post by vonmoltke »

5ilv3r wrote: post #49
theandrewbailey wrote: post #37

Earlier quoted context omitted.

News like this out of the blue is strange. I was pretty sure that the post-PC era was a sham. It still is, right?

How much of your time is now on a mobile that used to be on a desktop? Their core business is drying up.

Also chiming in with a "none". All mobile devices have done for me is expand my use of computing devices into realms in which I never used one before.

Re: Intel to Cut 12,000 Jobs, Forecast Misses Amid PC Blight

#227

Post by petra »

makomk wrote: post #180
intelthrow wrote: post #76

Earlier quoted context omitted.

I hope it's the hardware side of the company waking up that the software and "solutions" side of the company is a gangrenous fifth limb. Things like trying to start an app store when they didn't have content (e.g. Steam) or a platform (Google, Apple, Microsoft), trying to pivot that abomination into a media store after Netflix already won and the studios are all trying to start their own, trying for way too long to d…

I'd still like to know whose idea it was to try and compete in the Internet of Things market by pitting a buggy warmed-over 486 (the Quark) against ARM's best, most modern chip designs. Sure, Intel got a bunch of headlines in the tech press about their new IoT solution, but the technical details just didn't add up. The performance and power figures were dire, it couldn't run existing x86 code, it looked like a bear t…

Intel's latest Quark has gotten to 1.5ua sleep current with sram retention. That's not the best ,but that's good enough for many applications. And it's using 22nm so it may be the cost leader, by far. And that's mostly what counts in embedded.

Re: Intel to Cut 12,000 Jobs, Forecast Misses Amid PC Blight

#228

Post by joering2 »

make3 wrote: post #110
theandrewbailey wrote: post #37

Earlier quoted context omitted.

News like this out of the blue is strange. I was pretty sure that the post-PC era was a sham. It still is, right?

To me, it's more that Moore's law is over and that observable speedups are much less obvious to the non gaming consumers

To me the Moore's law will end where we all have a mediocre CPU at home connected to a fiber... any anytime you need to do work, or someone else, without being aware we share our CPU with eachother. Then there is no more Moore law - just one huge SPU (Sharable Processing Unit).

Re: Intel to Cut 12,000 Jobs, Forecast Misses Amid PC Blight

#229

Post by cft »

criley2 wrote: post #214
cft wrote: post #139

Earlier quoted context omitted.

The stimuls mode is a permanent regime now. It's good in the short term, but I do not know if anybody understood mid- and long-term consequences of this new permanent mode.

"The stimulus mode is a permanent regime now" As a general FYI to those reading -- please fact check before commenting. The Federal Reserve's quantitative easing program ended on Oct 29th, 2014 (538 days ago!) It is difficult to assert that a program which ended over 500 days ago is permanent. Additionally, one may be willing to assert that "ZIRP is permanent regime now" too, to tack onto the culture that central ban…

Just take things in in a perspective, not just based on the latest quarter news:

http://b-i.forbesimg.com/jessecolombo/files/2014/01/united-s...

http://moneymorning.com/wp-content/blogs.dir/1/files/2015/09...

http://www.naic.org/images/capital_markets_archive/2013/1305...

whether they do a token 0.5% hike (they probably won't), it's obvious that something very basic has changed, and quite likely irreversibly.

Re: Intel to Cut 12,000 Jobs, Forecast Misses Amid PC Blight

#230

Post by Inthenameofmine »

AJ007 wrote: post #212
tma-1 wrote: post #39

So Intel is cutting 11% of its workforce, Goldman Sachs just reported a 56% drop in profits, Morgan Stanley had a 50% drop in profits, Netflix missed subscriber growth estimates etc... yet, the Dow just hit a 9-Month high, and the S&P500 is now above 2100. The whole market is overvalued, not just the tech unicorns.

If helicopter money is the next step after 0 to negative interest rates, the stock market may be a pretty good deal right now. Get paid a lot more money, receive double digit gains on your retirement account year after year -- and be completely fucked in the process, ironically, because prices went up even faster and its more profitable to simply hoard things than sell them.

People QE seems to be the very last thing they want to do, which I think really tells a story here.

Considering the money the government is still pumping into the market directly, I don't think people QE will have the same effect. It really depends on how it's executed though.

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