Intel now cheaper than their net assets?
    byu/Astorphobis inwallstreetbets



    Posted by Astorphobis

    21 Comments

    1. It lost money.
      That means the business is shrinking and the market is not pricing in a reversal any time soon.

      Jim Keller left due to concerns with management decisions, they have since tripled down on the things he was against.

    2. If Patrick has 10 apples, but he borrowed 15 apples from grandma, and ate 5 apples but then borrowed 10 apples from Pepe to return to grandma, but then lost 6 of those apples, how many apples is Patrick really worth?

    3. You need to consider hiw accounting work.

      For example pets assuume you asked for a machine you need, and paid some company 1 million $ to make it for you. Because you think it is a “wise” investment for you. And you put this expense under the “assest” column.

      After a year, you realized it was a shitty investment, and you do can not make use of it at all. You need to keep it under the assets column to declare amortization for 5 years for tax reasons. Real value after 1 year might be even megative value, because you need money to deinstall that particular machine..

      So for a better valuation, it is important to know how they are making use of their investments, and if you are not asking questions, you can buy crap for a fortune…

    4. Gambler_Addict_Pro on

      Funny how everyone kicks Intel when going down. “INTC is dead due to XYZ. Going to take 2 years to recover, minimum”.

      Now that Intel bounced a little after being almost 70% DOWN, posts like this appears.

    5. Do these net assets include intangibles and fixed assets that are usually illiquid. Net assets is a really bad metric to use in tech given intanglibles. Is there a breakdown?

    6. ‘Goodwill’ value is always bullshit. Especially for a company in free fall. Might make sense for Apple or Lulu but not intel.

      Still a good buy on the cheap. Will be trading it this morning 👍

    7. genuinelywhatever on

      The great thing about yoloing into INTC is that it can always go down to zero!

    8. Yes. Market is dumb. Intel has hard value vs the imaginary value some put on other companies

    9. Accomplished-Snow568 on

      Don’t forget the difference between bankruptcy and having deal with Microsoft, AWS or IBM.

    10. Literally like all of their expensive CPUs they made for the last two years are sus and dying, and they can’t seem to fully fix it. They just keep releasing new fixes like every month.

      It’s gotten to the point where AMD CPU’s that are good for gaming have nearly doubled in price and are starting to go completely out of stock.

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