TDP: Slack Down 11%…
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Oct 25, 2020
The Intel on Intel
After seeing data center revenue growth of 40% during the first half of the year, shares of Intel (NASDAQ: INTC) have traded as far down as 11% on the news that the same segment saw a 7% revenue decline during Q3.
While the company overall beat revenue expectations, they raised the bar on the data center segment so high that it becomes hard not to disappoint. Moreover, the decline is indicative of deteriorating capacity to meet demands.
Nothing turns the Street off like a dying business.
Bye Bye ExxonMobil
ExxonMobil is no longer the most valuable energy corporation in the United States. EM was passed in value by NextEra Energy and Chevron. Exxon is one of only 3 companies to top the fortune 500 list and has been on the list since its inauguration in 1955.
NextEra Energy, a Florida based company, could be a huge win if Biden wins the upcoming election. With higher per capita production of solar, and wind energy, than any other competitor, a president who favors clean renewable energy could mean monumental things to the energy tycoon.
Slacking
TSlack stock was down more than 11% this week after Morgan Stanley analysts downgraded the stock to an equivalent of a sell rating. The rating comes due to an increase of usage of Microsoft Teams and Zoom due to the COVID19 pandemic.
The company has seemed to struggle keeping up with demand of working from home, while MSFT and ZM both have been constantly upgrading their software to create and launch better versions of their platforms while being able to simultaneously scale their product to handle more and more users.
Why it Costs you an Arm and a Leg Special Series: The Cost of Luxury (5/5)
One last Anti Law we’d like to mention is advertising to people who aren’t your customer. Going back to Veblen Goods, it’s important to remember that demand goes down with price because the purchase of these items is ultimately an evolution of primitive status symbols; that being said, their worth is contingent on others acknowledging it. Yup, your Gucci Flip Flops don’t count for anything unless society collectively says they do.
All in all, our understanding of the value of luxury goods is actually pretty intuitive: at the end of the day, we’re all fighting over the same resources, so of course you’re going to both respect and resent the person who can show you that he has your salary stored in their outfit.
As we’ve seen though, it isn’t quite that easy to reduce it to this in practice — the successful brands truly have an understanding of how to leverage a sense of exclusivity and scarcity of supply. If you can’t create the image of prestige, no one will pay you a prestigious price.
Fundamental Vs Technical Analysis Education
A very basic concept in regards to the markets is the difference between fundamental and technical analysis, two very different schools of thought in regards to investing.
Fundamental Analysis, what our analysts lean towards at EVO Trading Club, involves an in depth check of what kind of good or service a company actually provides and how they are performing financially; in other words, you’re usually looking for a company that you think is maybe undervalued or possibly going to continue growing aggressively.
On the other end of the spectrum, Technical Analysis looks at the actual stock charts; what’s happening to the price of shares and how is this reflected in various patterns and by signals.
Both schools have their value, so it helps to be aware of them each.
