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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

#391

Post by ececconi »

PhantomGremlin wrote: post #218
ececconi wrote: post #80

Earlier quoted context omitted.

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.

the CFO being let go He's not "being let go". From the article: Stacy Smith, who has been chief financial officer since 2007, will move to a new role as head of manufacturing and sales I'm not sure what to make of the move, but if they really wanted to let him go they wouldn't have given him this different role. Edit: just to elaborate, Intel is first and foremost a manufacturing company. Their manufacturing currentl…

You're right. I made a bold statement without looking into the details. Looking at their yearly balance sheet, though, their yearly liabilities are going up. They've got quite a bit of debt.

A good 1/3 of their assets are in property plant and equipment value. That means that the fair market value of that stuff can tank if they don't keep up the pace of growth because what if they can't sell as much of their products anymore because of a shift to other technologies?

This is for sure a move because their revenue forecasts are grim in many areas they operate in.

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

#392

Post by turnip1979 »

dgemm wrote: post #378
tma-1 wrote: post #237

Earlier quoted context omitted.

Yes it's permanent. Interest rates are still super low, meaning companies can still take on debt to buy back their stock. The effect of quantitive easing remains until interest rates start going up and the Fed start buying government bonds from the banks.

Interest rates have already started going up.

They went up once and the fed is signaling a lot of caution. The earlier analyst consensus was 4 hikes this year .. it is down to 2. The latest commentary I'm hearing says normal rates by 2019 .. which is psycho IMHO.

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

#393

Post by option_greek »

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.

You can thank Fed for that. I always wondered why Janet Yellen worries so much about stock markets. I mean isn't her duty to look at economy and make decisions instead all I see are ways to placate market by postponing things for ever.

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

#394

Post by tmptmp »

rtpg wrote: post #355
twoodfin wrote: post #308

Earlier quoted context omitted.

How does that work? If I have a meager income I'm not buying an iPhone or a desirable target for ads from Instagram.

Pedantic but an iphone is probably a way better purchase than most things if you are low income. For $400 you get a device that will let you watch movies, play games, check email, get phone calls, etc. Granted you could also get a cheaper phone but this replaces your TV and computer! Smartphones are really high-value!

>> watch movies???

How do you expect that person with meager income to pay for the network bandwidth and usage bill?

>>Smartphones are really high-value!

This I agree wholeheartedly. At least for people like me, who enjoy reading books, smart-phones (with sites like project Gutenberg) provide such an utopia that I feel like living in heaven. Of course, I know that smart-phones don't solve all problems automatically, but from knowledge-seeker's PoV, smart-phones are of great value.

Also, I understand that not all people like to read, but that's a different thing to ponder upon.

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

#395

Post by usaar333 »

partiallypro wrote: post #150
mathattack wrote: post #126

Earlier quoted context omitted.

Goldman's stock price is approximately 25% off it's 12 month high. [0] Morgan Stanley is approximately 35% off. [1] Seems like the market is properly taking in their bad news. Some parts of the market do fine, others get hit. And yes, some might be over-valued. When interest rates are low, the future cash flows of companies are discounted back at a lower rate. So if all things are equal (which they never really are,…

The GAAP P/E of the S&P is now at 24.28, that's near, if not, a record high. That's bad. It's very overvalued historically. Banking stocks are doing badly because interest rates are so low across the curve that they can't make money from the spread. But even at that, they are overvalued along with various momentum stocks like Tesla, Netflix (which we saw implode yesterday.)

The high P/E is driven by interest rates being low.

One can argue the way to judge stocks value is not by P/E but by E/P relative to interest rates; that is whether their excess return relative to risk-free assets is justified by their risk.

Interest rates remain 5% below their long-term historical average, which can justify E/P going up significantly. Currently stocks offer a 3.5% return over some classes of t-bonds, well in line with historical norms.

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

#396

Post by ahlatimer »

ranci wrote: post #103
bwhitty wrote: post #22

Earlier quoted context omitted.

Not trying to be condescending, but legitimately not much. Anecdotes don't really help us here.

Jobs created: "Yay! The economy is growing! The economy created xxx,xxx jobs last month! This is a great sign!" Jobs destroyed: "This can't be a sign of anything. Anecdotes don't help us."

You're comparing things across different levels. You have something at a macro level in one (jobs created across the economy) and at a micro level in the other (jobs destroyed at a single company). The economy as a whole might still net create jobs even with Intel laying off 11% of its workforce. Likewise, you can have the labor market across the economy shrinking while other companies are ramping up hiring. A single data point does not indicate a trend.

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

#397

Post by vacri »

Nullabillity wrote: post #236
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…

Even games are slowing down a lot in their requirements, aside from that VR garbage.

Interestingly, there's a strategy game series called Europa Universalis, which moved from a 2D map to a 3D map quite a while ago... the reason being that the 2D map was rendered by the CPU, whereas a 3D map could be shunted off to the GPU to deal with, freeing up precious CPU cycles for the game logic.

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

#398

Post by elliotec »

Deusdies wrote: post #386
elliotec wrote: post #371

Earlier quoted context omitted.

What do you mean by this? I know for a fact that I was paid more than some H1B folks at previous companies, with equivalent titles and experience.

> The Immigration and Nationality Act (INA) requires that the hiring of a foreign worker will not adversely affect the wages and working conditions of U.S. workers comparably employed. To comply with the statute, the Department's regulations require that the wages offered to a foreign worker must be the prevailing wage rate for the occupational classification in the area of employment. The prevailing wage rate is def…

Very interesting. It seems that violations of this law are probably quite often unreported and/or unenforced.

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

#399

Post by losvedir »

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?

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

Only if you subscribe to the "Greater Fool" theory[0]. On the other hand, if you think the stock price should reflect some sort of intrinsic value, say the net present value of the stream of all future dividends, then it could be the case that you would never recoup your investment with any stock currently.

[0] https://en.wikipedia.org/wiki/Greater_fool_theory

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

#400

Post by [deleted] »

hiram112 wrote: post #234

Intel ranks #14 in H1B use and was a large proponent of the bill to increase the allowance foreign tech workers. So I'm assuming their inability to find 'talent' is no longer an issue? Same as Microsoft, IBM, and the numerous other big corps that have had massive layoffs recently, while also claiming an inability to find enough US tech workers?

[deleted]
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