Last night, the stock price of Intel plummeted by 26% to close at $21.48 per share. The market capitalization, or Market Cap, now stands at a meager $91.848 billion, marking the steepest decline in 50 years since 1974 after the company reported earnings for the previous quarter that fell short of analyst expectations. Additionally, Intel announced plans to lay off more than 15% of its workforce and suspend dividend payments starting from the fourth quarter of this year.
Intel’s stock price has experienced a single-day decline greater than this in July 1974 when it dropped by 31%, just three years after the company went public.
Pat Gelsinger, CEO of Intel, further elaborated in an interview that the company’s current restructuring plan is a major overhaul, reminiscent of the shift from processing power units made about 40 years ago. This necessitates a new strategy to stay competitive, as the recent price competition has been fiercer than anticipated by the company.
Source: CNBC
**TLDR: Intel’s stock price plunges by 26%, marking the largest drop in 50 years, following disappointing earnings and significant restructuring plans, including layoffs and dividend suspensions. CEO Pat Gelsinger emphasizes the need for a major business transformation to remain competitive in today’s market.**
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