Intel stock continues to decline
There appears to be little that Intel can currently do to boost its stock price. Even the dramatic restructuring announced yesterday isn't enough to improve the shaky situation of Intel shares. Despite the fact that some analysts increased their earnings estimates for the processor manufacturer, the firm's share price dropped more than 3% to around $19.30 during early afternoon trading on Wednesday. Rival AMD was hit even worse with a 5% decline to about $24.90.
Trying to explain the price drop of Intel shares, analysts pointed to a generally volatile situation in today's market as well as possibly lower than expected layoffs at Intel. HSBC Securities analyst Rohit Pandey, for example, mentioned that Wall Street had expected a head count reduction of 10 and 20% - or up to 20,000 employees. However, Pandey said that "we believe the number is encouraging if viewed from the revenue and cost per employee perspective."