From Crossing Wall Street:
Yesterday, I highlighted Microsoft ($MSFT) and its relatively cheap valuation. Today, I want to look at a stock that's often paired with Microsoft: Intel ($INTC).
The stock has been doing terribly lately. Shares of Intel are at a fresh 52-week low today. In May, Intel was over $29 and today, the stock nearly broke below $20 per share. The stock first broke above $20 in early 1997. That was the same year that Intel's CEO, Andy Grove, was named Time's "Man of the Year."
Intel's last earnings report wasn't terribly good, but Wall Street's expectations were even worse. For Q3, the company earned 58 cents per share which was eight cents better than estimates. Earnings were down 11% from the same period one year before. Sales were down by 5%.
After exceeding analysts' expectations following the 2007-2008 financial crisis, the company's sales in recent months have slowed as demand for its microchips has weakened. Fearing the trend could continue, several analysts last week cut their estimates of the chipmaker's financial prospects, sending its stock price to its lowest level in a year...
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