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Thursday, August 1, 2024

AAPL -- Whoo-Hoo! LQ2024 -- June 2024 Quarter

Locator: 48288INV.

Surges after hours. 

Earnings call takeaways.

And this is their "slow" quarter.

AAPL won't cut its dividend. No headlines about cutting staff.

Meanwhile,  

INTC: worst Dow stock of the year — according to CNBC earlier this morning, before the market turned. Still no mention of fried CPUs. Later: down almost 15% for the day. Wow.
On a day like this, one can start to separate the winners from the losers. Investors should welcome days like this. When the Dow rises 600 points, everything looks good. When the Dow plunges 600 points, one can start to separate the wheat from the chaff.

But that's a story for another day. I'm trying to get off the internet -- going swimming.  

Not everyone is being punished. DoorDash, for example, is up almost 14% after hours, after earnings were reported. Again, corroborates my hunch. A plunge of 600 points on the Dow helps investors sort the wheat from the chaff. 

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Intel -- INTC -- WSJ

Moments after posting the above, this was posted on line, WSJ. This was pushed to me on my iPhone as a WSJ alert.

[To put that in perspective: TWSJ publishes untold number of stories every day; I get no more than a half-dozen alerts from TWSJ every day. And today, this is one of two or three WSJ stories that got pushed to me. Speaks volumes.]

It's hard to get much worse.

Link here.

INTC dropped 5.5%, and then another 18% after hours? See ticker screenshot taken at 4:18 p.m. CDT, after the close, August 1, 2024:

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CNBC: "FAST MONEY"

Will they talk about AAPL? One of the bright spots today? LOL. The "Fast Money" panel absolutely hates AAPL.

Lots of talk about "recession is back on the table." "A hard landing."

"Fast Money" is now taking about INTC. Almost breathlessly. INTC earnings / conference call going on right now.

INTC announces a $10 billion cost cut plan but will continue to build-out its AI sector.

"Fast Money" panelist: "none of this is any good."

Another panelist: "shocked." And "shocked" with the comments made by Gelsinger.  

INTC now down to $23. 

The "Fast Money" folks seem like sharks circling Intel and Gelsinger. 

One panelist is "working overtime" / make a stretch that the INTC story is not unique. 

"Good for them" -- cutting their dividend. 

Carter: "isn't that something (the drop). Not executing." It's as simple as that. Actually it's more than that. But I've beat this dead horse one too many times.

It would have been a great seque to AAPL but nope, not to be. 

AAPL is up over 12%, YTD.

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Disclaimer Briefly
Reminder
  • I am inappropriately exuberant about the US economy and the US market, 
  • I am also inappropriately exuberant about all things Apple. 
  • See disclaimer. This is not an investment site. 
  • Disclaimer: this is not an investment site. Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here. All my posts are done quickly: there will be content and typographical errors. If anything on any of my posts is important to you, go to the source. If/when I find typographical / content errors, I will correct them.
  • Reminder: I am inappropriately exuberant about the US economy and the US market, 
  • I am also inappropriately exuberant about all things Apple. 

Finally, they talk about AAPL. Not much said. "Investors are simply going to have to wait." Services at a 20% growth rate a big surprise. Needs to be fact-checked. Services seems to be in a great place. Active base hit a new record. 

Tech is tracked here.

Chips are tracked here.

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The Story

Link here.

Intel plans to lay off thousands of employees this year and pause dividend payments in the fourth quarter as part of a broad cost-saving drive more than three years into Chief Executive Pat Gelsinger’s turnaround effort. [Three years' turnaround effort.]

Gelsinger laid out the plan to reduce costs by more than $10 billion next year as the chip maker reported second-quarter sales of $12.8 billion, down 1% and below analysts’ forecasts. Reaching that cost-reduction goal will require cutting jobs and lowering capital expenditures, among other moves, the company said.

Intel has struggled to gain a foothold in the market for artificial-intelligence chips that have driven the sales and valuations of Nvidia and some other rival chip makers. The heavy spending on those AI-focused chips to build out big data centers also has cut into demand for the non-AI processors for data centers that have long been central to Intel’s business.

“Clearly market conditions, some were good and some not so good, and you have to adjust the financial envelope appropriately,” Gelsinger said in an interview. “The AI surge was much more acute than I expected, and you have to adjust to those things.” [Did not mention much serious issues previously reported and well known to analysts.]

Intel will lay off about 15,000 people, most of them by the end of this year, Gelsinger said in the interview. The company reported about 116,500 employees in its core business at the end of June. [Trending toward 15%. Not trivial.]

Intel reported a loss of $1.6 billion for the second quarter, compared with a $1.5 billion profit a year earlier. It said it expected sales of roughly $13 billion in the third quarter, below analyst forecasts.

The pause in the company’s dividend follows a 66% reduction of the payouts last February
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