At the end of last week, Intel shares took a nosedive when they reported that they’ve had a decrease in demand for their data center business. This segment of their business, generates a third of their revenue and one long-time Intel investor has had enough.
“My how the mighty have fallen,” stated Nancy Tengler, chief investment officer at Laffer Tengler Investment, told CNCB’s “Trading Nation.”
Intel shares plummet
On Friday, Intel shares fell more than 10%, closing at $48.20. On Monday’s premarket, it wsa down almost 1%.
“For me, the most troubling issue is not the numbers. The numbers weren’t that bad — the company generates $75 billion in revenue and has $3.5 billion in cash. So we know they can pay the dividend. The real problem is the manufacturing issue that just doesn’t seem to be getting any better,” Tengler stated.
“The long-term trend is still up and the trend is still your friend with Intel at this point.”Craig Johnson, chief market technician at Piper Sandler
Craig Johnson, chief market technician at Piper Sandler had a different opinion. During the same segment of CNBC’s “Trading Nation”, he stated, “The long-term trend is still up and the trend is still your friend with Intel at this point.”
Johnson pointed out key levels to look out for in the short term for us traders with a shorter time frame. He noted that there’s “support at $47, $45 and then $43.”
“You’ve got some pretty good downside support and the long-term trend is still your friend,” Johnson stated.
Our Take: Take a good, hard look at your trading strategy.
Historically, Intel has been bullish. It’s important to keep your trading strategy in line despite recent news. Ask yourself, are you in it for the short term profits or the long haul gains?