Uh-Oh: This Guy Plows $700,000 Into Intel Shares Just Before Its Terrible Earnings!
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Some traders invest systematically, choosing their bets via a meticulous process that employs rigid rules. Others adopt a roulette table approach, gambling away excess liquidity based on a hunch or an inkling. Consider the case of a Redditor who gambled $700,000 on Intel shares just before its deplorable Q2 2024 earnings.
The Chip Manufacturer's Second Quarter Of 2024: What Went Wrong?
As we noted in a previous post, Intel has posted broadly negative results relative to the consensus expectations for the second quarter of 2024.
Related Story Intel’s 18A Panther Lake For Client & Clearwater Forest For Servers Booted Up, 80+ Lunar Lake “Copilot+” PCs Shipping This Quarter, Meteor Lake Yields Fall Short
The chip manufacturer not only failed to meet the consensus expectations of analysts for its top-line and bottom-line metrics but also failed to deliver on the key DCAI segment, which indicates that it has yet to truly tap into the secular AI-focused tailwind.
Additionally, Intel missed its own guidance for the just-concluded quarter's gross margin by a wide shot and guided to further sequential weakness.
Finally, as critical cost saving measures, Intel has cut its dividend and formalized another mass layoff plan, to the tune of 15,000 employees, or 13.6 percent of its current workforce of around 110,000. This follows the 5 percent layoff that the company implemented just last year.
So, why did so many things go so wrong for Intel this quarter? We defer to ARInsights' Patrick Moore, who quoted Pat Gelsinger in an X post to note that Intel likely faced yield issues on Meteor Lake chips. On the positive front, Gelsinger said:
He then goes on to add:
A Redditor Bets $700,000 On Intel
This brings us to the crux of the matter. In a post on Reddit's infamous r/wallstreetbets thread, a user who goes by the moniker Sad_Nefariousness10
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