Prompt's TechBlog
We're all doomed, doomed I tell you!
03 March 2006
Posted by LC
Chip manufacturer Intel has lowered it's revenue forecasts for the first quarter of this year, by about half a billion dollars. Being something of a barometer for the entire tech industry, this has sent the stock market wheeler dealers into something of a froth and we've already seen Intel lose 2.5% of its share value since the news was announced.
But how important is it really? To put it into context, the revenue guidance fell from $9.1-$9.7 billion down to $8.7-$9.1 billion, hardly the end of the world. But the stock market is a notoriously panicky beast, and the accompanying news that last quarter's profits jumped by 25% did little to sooth anybodies nerves. That's right kids - marginally falling revenues tomorrow are much bigger news that yesterday's massive profits. Intel's chips may work on logic, but the stock market certainly doesn't.
But how important is it really? To put it into context, the revenue guidance fell from $9.1-$9.7 billion down to $8.7-$9.1 billion, hardly the end of the world. But the stock market is a notoriously panicky beast, and the accompanying news that last quarter's profits jumped by 25% did little to sooth anybodies nerves. That's right kids - marginally falling revenues tomorrow are much bigger news that yesterday's massive profits. Intel's chips may work on logic, but the stock market certainly doesn't.
# posted by LC at 3:50 PM 
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