I think you may be confusing the (temporary) improved stock price with improved/recovered profitability? I see the (temporary) stock price recovery, as driven PURELY by valuation, i.e. an increase in P/E (instead of EPS).
Intel’s revenue is currently worse than 10 years ago, and gross profits are 2/3 of what they were around 2012.
The temporary price hike was caused by a huge temporary jump in relative valuation (probably because the US Gov started subsidizing).
See the historical graphs:
- https://www.macrotrends.net/stocks/charts/INTC/intel/pe-rati...
- https://www.macrotrends.net/stocks/charts/INTC/intel/revenue
- https://www.macrotrends.net/stocks/charts/INTC/intel/gross-p...
Well yes, that's why they need the bailout. They are getting smoked.
Big companies are like big ships. Takes a LONG time to turn.
Game is not over yet.
I was commenting on this though
> They bailed out Intel and the stock recovered.
I don’t think the stock (or the company) has recovered at all. Neither profits nor revenue (see my links above).
But hey, who knows what the future brings.
The bailout was in Aug 25 when INTC was < $25.
It closed today above $60.
That's a stock recovery.
I was very specific. I said stock. That's a recovery.
Sure, the stock price is up.
Currently trading at 3-4x historical valuation (20y typical range of forward P/E).
Again. Very specifically said the stock recovered. That's a positie.