Intel's bad year worsens, with analyst decrying company as 'profoundly broken'
Shares of Intel (INTC) are down about 9% in Friday's midday trading after the company came up short with its revenue and margin outlooks for the current quarter. It's the second significant post-earnings selloff in as many quarters for Intel's stock.
Intel is the third-worst performer in the S&P 500 SPX so far this year, with a roughly 36% stock-price decline over the course of 2024.
"We'd like to believe the bottom is in but we have lost count of the times we have heard it," Bernstein analyst Stacy Rasgon wrote.
He sees an "extremely challenged" short-term picture for the company. Over the medium term, "management continues to put a hockey stick into numbers, adding risk to an already precarious position."
"And while we believe they are doing everything they can to try to repair things it is clear that the company is profoundly broken, and it will take years to see the fruits of their (currently exhaustive) labor, with success in their endeavors far from assured amid execution difficulties and structural headwinds," he added.
