Diamonds and Dogs

10/25/19

Intel (INTC) trading near all-time highs. Intel is up 7% following better than expected earnings. The chipmaker beat by 18 cents as sales rose 0.1% to $19.19 billion, well above estimates of $18.1 billion. Intel's guidance was also above Wall Street's expectations for the full year.  Management said the company has been on a multiyear journey to reposition Intel's portfolio to take advantage of the exponential growth in data. The analysts are all over the board with price targets ranging from $42 a share to as high as $70 a share.

Amazon (AMZN) taking a hit. Amazon is down a percent after dropping as much as 5% last night following earnings. Amazon actually missed estimates by 26 cents even as revenues rose 23.7% to $69.98 billion. The company made cautious comments about the holiday season lowering sales and operating income estimates. Part of the problem is Amazon's costs are higher due to spending money to grow. The company spent over $800 million in the quarter to put one-day shipping in place. The company will also spend $800-million on a data facility in Buenos Aire in Argentina. Amazon will also add over a billion in expenses in the fourth quarter for transportation, the cost of expanding their transportation capacity and things like adding additional roles and shifts in thier warehouses, I don't think many retailers feel too bad that Amazon's stock is trading lower.