Three technology companies, Intel, Twitter, and Snapchat, released their latest quarterly earnings reports. Let's take a look at their performance and the key information revealed at the earnings conference.
Intel(INTC) stock forecast 2025
Several important data on Intel's earnings report beat expectations. Among them, earnings per share were US$1.28, higher than the expected US$1.06, an increase of 12% over the same period last year; total revenue was US$18.5 billion, beating analysts’ expectations of US$17.8 billion.
However, in Intel's guidance for the next quarter, the Non-GAAP gross profit margin given is only 55%, which is far lower than the market's expected 59.2%. The reason given by Intel is that it is worried that supply chain problems will limit profitability, and the expected chip manufacturing business will bring additional costs.
For chip companies, the market is most concerned about gross profit margin. TSMC fell last week because of poor gross profit margin. Today, Intel’s substantially lower-than-expected gross margin guidance aroused investors’ concerns. Intel’s stock price plummeted after the market opened. It once fell more than 7% during the session, and finally closed with a 5.3% drop.
In this regard, Wall Street has also lowered Intel's target stock price.
First, some analysts believe that although Intel raised its 2021 revenue guidance from US$72.5 billion to US$73.5 billion, US$700 million is unsustainable non-operating income. Intel's full-year earnings per share are far below Wall Street expectations if such items are excluded.
Second, Intel's chip manufacturing business is still in its infancy, and it is too early to say that Intel can regroup. Many analysts believe that it will take until November to judge whether Intel’s chip manufacturing business will improve.
Third, this financial report has exacerbated the market's concerns about the competition between Intel and AMD. The operating profit margin of Intel's data center business this quarter has dropped from 43.5% last year to 30.1%. This is mainly because Intel has to cut prices to retain customers in order not to be robbed of market share by AMD.
On the whole, Intel’s financial report revealed a lot of information, indicating that his fundamentals are facing the risk of deterioration. Unless Intel's chip manufacturing business makes qualitative progress, or it considers cooperating with TSMC to regain the market share robbed by AMD. Otherwise, I think Intel will not have investment value in the short term.
After talking about Intel, talk about Twitter and Snapchat. Because these two companies are affiliated with social media companies, let's put it together and make a simple comparison by the way.
Twitter(TWTR) stock forecast 2025
Twitter’s report card is generally very good. Among them, earnings per share were US$0.20, much higher than the expected US$0.07; total revenue was 1.19B, which also beat the expected 1.07B, and Monetizable Daily Active Users was 206 million. , The same as expected. After the financial report, the market also gave a good response. Yesterday, it rose by more than 9% after the market, but the gain narrowed after the opening today, and finally closed by 3%.
Snapchat(SNAP) stock forecast 2025
Snapchat earned $0.10 per share for the quarter, beating Wall Street's expected loss of $0.01; total revenue was $982 million, which was about 16% higher than the expected $846 million. The number of realizable daily active users was 293 million, 3 million higher than expected, and the Average Revenue Per User was $3.35, which was also 21% higher than the expected $2.92.
The company also stated in the financial report that the impact of Apple's updated privacy policy on Snap is not as large as expected. The perfect financial report data and the elimination of the uncertainty of IOS's privacy clauses made Snapchat popular in the market today. Its stock price soared by 24%, and its closing price was $77.98, a record high.
Twitter and Snapchat are both advertising-based social platforms, but their advertising models are very different. The Wall Street Journal believes that Twitter's advertising model has more potential in comparison, and suggests that investors should choose Twitter among the two.
The main reason is that Twitter's advertising model makes it less affected by the IOS privacy policy. Compared with Snapchat, most of Twitter's advertising revenue comes from direct brand placement and does not require the brand to track user preferences to determine the push of advertisements.
Therefore, although Snapchat just announced that the impact of the IOS privacy policy is less than expected, the long-term negative impact on Twitter is likely to be much lower than that of Snapchat. In addition, the Wall Street Journal believes that Twitter's short-term upside potential will also be greater.
As Twitter can benefit from the return of sports events, the Tokyo Olympics, major baseball and American football games in the next few weeks will allow sports fans to spend more time on Twitter, which will benefit Twitter's short-term performance.
Twitter and Snapchat have performed very well recently, but it is also because of the dividends of the epidemic that there is a certain risk of overbought in the short term. And neither company has shown sustainable growth potential. With the end of the epidemic, I doubt whether they can sustain their growth rate. At least I will not choose to invest in these two companies at this point in time.
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