Stock futures are under pressure this morning after yesterday’s gains. Second quarter GDP numbers are out. The unprecedented 32.9% decline is just a few notches better than the forecast loss of 34.7%. This is the largest quarterly plunge in GDP ever.
It’s an interesting day for earnings with Facebook, Amazon and Alphabet all reporting after close. Let’s see if the sky high market expectations for these three giants are justified.
Last week one company reported earnings and investors hated what they saw. The message from Intel Corp. (INTC) management was underwhelming, but it wasn’t that bad. The problem was the expectations were so unrealistically high. INTC share price saw a 17% loss after the company reported earnings and is currently down 15% for the year.
Intel is still a dominant player in providing brains to global computing powers and demand for tech is exploding as a result of the coronavirus crisis. Their two main competitors are currently setting records. NVDA is up 73% for the year and AMD is up 51%
With a P/E of 11 and a price that is less than four times its full-year sales, INTC stock is lean, and currently resting at a three year support level. It stands to reason that over the long term, the present price should be a good starting point.