The Intel Corporation’s stock is now down to $20.00 with shares trading in the ~ $19 range earlier in the day. That’s pretty bad.
Shares traded in the $18 range after the cost cutting announcement in August, and that was a huge announcement. And after Donald Trump became President Elect the stock went back up to the $26 range. Once again losing all this value really shows just how little investors believe in this company.
INTC may very well become a single digit stock when the interim CEOs announce another round of layoffs and cost cutting. They’ll want to take advantage of the fact that their positions are interim and investors can’t hold a grudge and demand their firing. They’re already set to be “fired” you see. And they’ll want to offer a clean slate to the new CEO. That’s my guess anyway.
The future of Intel is bleak and its survival is not guaranteed. It absolutely is too big to fail, but that doesn’t mean shareholders won’t get wiped out in the governmental rescue process. Afterall, the Federal Government wants the fabs, not the chip designers. In the government’s eyes there are plenty of other designers to fill in for Intel. So a dissolution of Intel as we know it is possible.
Personally I wouldn’t invest in Intel even if you paid me.
This post does not constitute financial advice and is speculative in nature. If you want financial advice see a financial advisor.