Intel just recently released their revenue forecast for 2019 that showed better earnings than they had expected, but unfortunately for Intel, those numbers were perceived as weak and the company’s shares fell more than 10%. The report was the first for CEO Bob Swan who took the position in January.
The expected sales for 2019 were $2.05 billion lower than their initial expectations of $71.05 billion. This might be the worst drop in revenue for the company since 2008 and will also mark the company’s first revenue drop since 2015.
As a result, Intel lost more than $25 billion from its market cap which is a significant number even for a company this big. It is now valued at $233.8 billion. Before the earnings report on Thursday, the stocks were up by 22% year-to-date but now, that number has fallen to 10%.
Last week, Intel said they would no longer be involved in the 5G smartphone market as they felt there was “no clear path to profitability”. This statement came after the recently settled legal dispute between Apple and Qualcomm which allowed the use of Qualcomm’s 5G modem chips in upcoming iPhones that would support 5G.