Intel
It was bound to happen. Someone had to start pointing out that Intel (INTC) is now one of those deep value plays that may pay off over the long run.
Barron’s published an article this afternoon pointing out that Intel share recently traded as low as $19.50, just three cents above it’s tangible value. Barron’s went on to say that it’s a rare find a find a major technology company trading around its tangible book value.
The article used Advanced Micro Devices (AMD) and NVIDIA (NVDA) as an example, pointing out that those companies are respectively trading 15 and 50 times their tangible book value.
Years dropped from $30 to roughly $20 last week after the company announced disappointing earnings and a weak outlook for the semiconductor producer.
The stock has spent this week bouncing off the $20 level, which should be seen as strong psychological price support.
That said, many investors that have been around long enough can remember Cisco’s post-Dot.com decline from $50 a share to under $10 a share before it posted a long-term tradable bottom.
Intel’s long-term outlook remains neutral.
Expedia
Expedia (EXPE) shares are trading up almost 10% on Friday after the company posted stronger than expected earnings. The travel-related company is one of the few to impress investors with their latest quarterly results.
Expedia beat their earnings per share target by $0.33 after reporting revenues that were in line with expectations. The company also showed gross bookings that were up 6% Amid a softening travel industry.
Last quarter, Expedia’s management issued revenue guidance that was lower than expectations.
The company’s management pointed out that starting in July, macroeconomic demand began to slow in the travel industry. This message has already been aired by Airbnb and bookings post earnings remarks within the last week.
As a result, Expedia expects the company’s next quarter revenue to be lighter than expectations.
Investors are ignoring the bearish outlook for the company as shares of Expedia are trading higher on heavy volume.
Expedia shares are trading back above their 20 and 50 day moving average today.
Investors remain cautious on Expedia shares.
A break back below $125.00, which is where the 50-day moving average sits, would put the stock back under control of market sellers.
Meta
Meta (META) shares are accounting for one of the only strong points in the Nasdaq 100 index (QQQ) performance today. The social media stock has broken back above $510 and appears to be ready to move to $540 over the short-term outlook.
The stock has been moving higher over the last two weeks despite the NASDAQ 100 weakness, which is attributed to broader weakness in the technology sector during the earnings season.
It’s notable that online advertisers like Digital Turbine (APPS) and The Trade Desk (TTD) Have reported earnings surprises over the last two days, seeing their stocks move more than 10%. Higher as a result.
The fundamental results of those two companies are lending strength in Meta and Alphabet (GOOGL) this week in a show that online advertising remains strong.
In moving above $510 managers initiate what is referred to as a volatility rally. This happens when a stock breaks above its top Bollinger band, a measure of stocks volatility.
The last volatility rally in META shares started on June 5th, 2024, resulting in a move from $490.00 to $515 in just over a week.
Short term investors should expect this volatility rally to carry the stock from $520 to $540 in a relatively short period of time.
META shares continue to have a bullish outlook, with a price target of $600.
