Yes, Virginia, Microsoft and Intel can be disappointing

Article Abstract:

Intel and Microsoft can affect the entire market adversely when even a strong performance falls slightly below expectations or a casual comment is taken seriously. Intel's earnings for the quarter ending Jun 1995 were $879 million, a 37% increase on earnings in the same quarter from the previous year, but because they were $25 million, or under 3%, short of analysts' projections, Intel shares fell almost 15% and have remained flat. Similarly, Microsoft's chief operating officer made an off-handed comment about the company's rapid stock run-up. Traders responded by cutting 15% off the stock price. The rapid change is expected to recur, since Intel and Microsoft are set to announce their latest quarter earnings in a market where technology stocks fell 7% on news of earnings from Novell and Motorola, only to rebound in the same week. The companies' power comes in part from the fact that the two make up 9.1% of the Nasdaq index, giving them more weight than the total of the next nine most-important companies.

Electronic computers, Electronic Computer Manufacturing, Computers & Auxiliary Equip, Computer industry, Microsoft Corp., Forecasts and trends, Industry trend, MSFT, Industry Trend Or Event

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A chip order it cut. Result: technology stocks reel

Article Abstract:

Cirrus Logic announces that one of its largest customers is reducing its order of graphics and audio chips, feeding fears that technology stocks are riding too high and sparking a round of trading that made Intel's stock the mostly highly traded in the US for Nov 7, 1995. While some analysts see the announcement as reason to downgrade technology stocks, others believe it will have little significant effect on overall PC sales. Analysts also point out that consumers are simply moving away from low-end systems powered by 75MHz Pentium chips and are buying high-end PCs. Cirrus refuses to identify the customer, which most observers believe is Intel. Intel also refuses to confirm the rumors, saying only that it anticipates its 4th qtr 1995 sales will outpace those made in the 3rd qtr. Cirrus had also predicted a stronger 4th qtr, but now says the Dec 1995 quarter will grow only 3% to 5% over 3rd qtr 1995 revenues of $317 million, which were 166% higher than 3rd qtr revenues in 1994.

Discrete Semiconductors, Finance, Company sales/revenue, Company sales and earnings, Company losses, Cirrus Logic Inc., CRUS

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Can Intel stock get off its back? Varied investor sentiment over top-notch company

Article Abstract:

Not all investors are recommending purchases of Intel's stock, which has been declining recently. Its per-share value closed at $83.75 on Oct 16, 1998. This value represents a 16.6% decline from the 1997 high of $100.50 on Aug 20, 1997. The semiconductor giant's current 24.1 P/E ratio also does not match the overall market ratio. A new debate has arisen since mid-Oct 1998, when Intel announced a surprising 14% revenue gain for the 3rd qtr 1998 compared to the 2nd qtr 1998. By comparison, Intel initially had projected flat revenues and then estimated an improvement ranging between 8% and 10%. Bulls said the report signals that PC vendors have solved a 1st half inventory glut that weakened sales. Bears said buyers' regular need for boosted processing power has peaked, and that Intel faces revived competition. Intel's momentum should continue in the 4th qtr 1998, according to many investors.

Semiconductor Devices, Company securities

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