Markets are in a forgiving mood. When Intel (INTC) posted weak gross margins and a Q1/2023 loss, the stock gained 4%.
Intel’s revenue fell by 36.4% Y/Y. The company is cautious about the macroeconomic outlook but will deliver on IDM 2.0. Advancements in its foundry business will enable the struggling firm to capitalize on a $1 trillion market opportunity.
Intel is optimistic that the PC downturn is over. Expect the PC refresh to resume as corporations and customers upgrade their hardware.
Amazon (AMZN) fell by 4% on Apr. 28 when it posted Q1 results. It earned $0.31 in GAAP EPS. Net sales will only grow by 5% – 10%, while operating fall to $2B – $5.5B, compared with $3.3B in Q2/2022.
AMZN stock is unattractive at a forward P/E of 42 times. Free cash flow is negative and net income growth is weak.
Meta Platforms (META) posted an unexpectedly strong advertising revenue figure. $28.1 billion in ad revenue surpassed the expected $26.88 billion. The job cut of 11,000 is almost complete. This removes the efficiency objective. While the stock buyback enhanced shareholder returns, the continued costs for the metaverse are bad news for investors.
META stock trades at above fair value. Consider taking profits after the strong rally.