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  • 🗞️ Intel Disappoints Wall Street

🗞️ Intel Disappoints Wall Street

PLUS: Meta gains 5%

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Market Performance

  • S&P 500: 6,913.35 ⬆️ 0.55%

  • Nasdaq: 23,436.02 ⬆️ 0.91%

  • Dow Jones: 49,384.01 ⬆️ 0.63%

Intel's Mixed Quarter Sparks Supply Concerns

Intel (INTC) reported Q4 earnings that beat Wall Street's expectations with adjusted EPS of $0.15 versus the $0.08 expected, and revenue hitting $13.7 billion against forecasts of $13.4 billion.

The celebration was short-lived, though—shares tumbled as much as 13% in after-hours trading.

Why the selloff? Intel's Q1 guidance came in disappointingly soft, projecting revenue between $11.7-$12.7 billion and breakeven adjusted earnings per share, missing analyst expectations of $0.05 EPS on $12.51 billion in sales.

CEO Lip-Bu Tan admitted yields on their cutting-edge 18A manufacturing technology remain "below what I want them to be," while CFO David Zinsner blamed insufficient supply to meet seasonal demand.

The company's $600 million net loss didn't help investor confidence either.

Despite investments from the U.S. government, SoftBank, and Nvidia—who completed a $5 billion stock purchase during the quarter—Intel faces a critical test: can it ramp up production efficiency fast enough to capitalize on the AI infrastructure boom driving server chip demand?

INTC stock has a Ziggma score of 18, ranking lower than peers in valuation, profitability, and growth.

Our Takeaway

Intel's strong quarterly performance proves demand exists, but supply constraints threaten to derail momentum at the worst possible time.

Watch Q2 closely—if yields don't improve, those government and Nvidia investments may look premature.

Market Overview 📈

Markets extended Wednesday's gains as:

  • Geopolitical tensions eased following President Trump's announcements regarding Greenland and European tariffs.

  • The rally was broad-based, with 61 S&P 500 stocks hitting new 52-week highs, including Monster Beverage, Exxon, and Caterpillar reaching all-time highs.

  • The optimism stemmed from Trump's decision to abandon new tariffs on eight European nations, set to begin on February 1st, and

  • Trump’s announcement of a "framework" deal with NATO Secretary General Mark Rutte regarding Greenland.

Economic data provided additional support:

  • Q3 GDP was revised upward to 4.4% from prior estimates, while jobless claims held steady at 200,000, keeping the four-week moving average at its lowest since January 2024.

  • November inflation came in at 2.8% per the PCE index, matching expectations but drifting slightly from the Fed's target.

Retail traders bought the dip during this week's volatility, continuing their 2025 playbook of stepping in during selloffs.

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Stock Moves Deciphered 📈

⚡️ Enphase Energy (ENPH) 

Shares surged by more than 12% after Citigroup upgraded the stock from "Sell" to "Neutral" and raised its price target to $37.

The bullish analyst sentiment, combined with ENPH crossing its 200-day moving average, fueled significant investor optimism and speculation of a potential short squeeze in the solar equipment manufacturer.

🚀 Meta Platforms (META) 

The social media giant rallied more than 5%, leading the "Magnificent Seven" stocks as the broader market lifted all mega-cap tech names.

Jefferies reiterated its buy rating and highlighted Meta as a top pick, citing attractive risk-reward potential after the stock's 18% drop since its last earnings report and strong positioning in the AI landscape.

💰 Autodesk (ADSK) 

Shares rose over 4% after the design software company announced a 7% workforce reduction as part of a restructuring plan to increase focus on artificial intelligence.

Investors viewed this strategic move positively as a catalyst to drive future growth, especially following a period of underwhelming stock performance.

Headlines You Can't Miss 👀

📊 BitGo shares surged 25% in its NYSE debut, hitting a $2.59 billion valuation at $22.43 per share, well above its $18 offer price.

🏦 Northern Trust beat Q4 expectations with EPS of $2.42 on revenue of $2.14 billion, sending shares up over 6% to record highs.

🎮 GameStop CEO Ryan Cohen purchased another 500,000 shares at $21.60 each, stating CEOs who don't buy shares should be fired.

🏢 Sphere Entertainment announced plans to build a second venue in Washington D.C. with 6,000 seats, driving shares up 5.6%.

📈 Datadog upgraded to buy by Stifel with expectations of 23%+ growth next month, sending shares up 6% despite a lowered price target.

🚚 Knight-Swift Transportation missed Q4 earnings and issued disappointing Q1 guidance, dropping shares 3.5% after hours.

📉 Hyatt was downgraded to in line by Evercore ISI, as the risk-reward feels balanced, and the distribution segment's profitability has declined 42% since 2022.

🧴Procter & Gamble (PG) 

The consumer goods giant posted mixed Q2 results with adjusted earnings of $1.88 per share, beating the $1.86 consensus, but revenue of $22.21 billion missed the $22.28 estimate.

Despite strong performance in beauty and healthcare, shares fell by more than 2% as investors digested slower growth.

🚓 Mobileye Global (MBLY) 

The autonomous vehicle tech company's shares lost nearly 3.5% after disappointing full-year guidance.

Mobileye expects revenue of $1.9-$1.98 billion, versus the $2 billion consensus, and adjusted operating income also falls short of expectations.

The guidance miss overshadowed any positive quarterly performance and raised concerns about near-term growth prospects.

🏥 Abbott Laboratories (ABT) 

The medical device maker tumbled 5% despite a solid Q4 earnings report, as its full-year 2026 earnings guidance, while in line with analyst forecasts, failed to impress investors.

The lack of a more bullish outlook for its glucose monitoring systems and other medical devices led to disappointment, with shares hitting lows not seen since July 2024.

What’s Next?

Key market and macro news 👇

⛽️ SLB Earnings Report: The energy services company is expected to report Q4 earnings. The consensus EPS forecast is $0.74 per share, a 19.57% decrease from the prior year.

📳 Ericsson Earnings Report: The wireless equipment company will announce its Q4 earnings, with analysts expecting a 35.29% increase in EPS.

📊 The release of the PMI Composite Flash will provide a snapshot of the health of the manufacturing and services sectors, which can significantly influence overall market sentiment.

📉 The release of the Consumer Sentiment and Leading Indicators reports will offer insights into consumer confidence and the future direction of the economy, which are key drivers of the stock market.

Chart of the Day

Source: App Economy Insights

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