Why $INTC Soared While $STM Sank After Earnings
This earnings season is proving that headline beats alone are no longer enough.
While $INTC surged as short covering amplified a surprisingly strong report, $STM showed how quickly investors punish AI-related companies that fail to exceed expectations or deliver a compelling outlook.
1. $Intel(INTC)$
That HUGE move up post ER on INTC was likely short covering given the massive sell volume during the final minutes of normal trading.
Some placed huge bets against it given the terrible performance of $Alphabet(GOOGL)$ $Tesla Motors(TSLA)$ .
Short covering should not be allowed after hours or during premarket. But also, Jim Cramer should be put on a 2 month quiet period after any company releases a double beat.😅
2. $STMicroelectronics NV(STM)$
That massive drop in STMicro’s stock post ER even after a beat on rev and adjusted NPAT shows just how unforgiving the market is on AI names that don’t over-deliver in every metric and provide better than expected guidance.
This is the job that management of all AI-related firms need to do going forward and ST Micro’s management was quite unconvincing (and a bit difficult to understand) during their call today.
They could have done much better given the tailwinds to their business esp AI / data center rev doubling in 2027 + GPMs expanding.
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