Netflix, Tesla, and the State of the Movie Business
Motley Fool Hidden Gems Investing
The Motley Fool
4.3 • 3.1K Ratings
🗓️ 23 October 2020
⏱️ 39 minutes
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| 0:00.0 | Everybody needs money. That's why they call it money. |
| 0:07.0 | From full global headquarters, this is Motley Fool Money. |
| 0:19.0 | It's the Motley Fool Money Radio Show. I'm Chris Hill joining me this week. Jason Moser and Ron Gross. |
| 0:24.0 | Good to see you as always, gentlemen. Hey, you're doing Chris. |
| 0:27.0 | We've got the latest headlines from Wall Street. Nell Minnow is our guest. And as always, we've got a couple of stocks on our radar. |
| 0:33.0 | But we begin with a couple big names in technology both down around 10% this week. |
| 0:40.0 | Intel's data center business was weak in the third quarter. And that brought the stock down on Friday. |
| 0:47.0 | You tell me, Jason, how bad is this? |
| 0:50.0 | Well, so I mean, it could be worse. It's obviously not been a very good year to date for Intel. |
| 0:59.0 | I mean, their transition from being a PC based company to becoming a data center, a centric company is certainly presenting its fair share of challenges. |
| 1:08.0 | Now, with that said, as much pessimism that is out there right now, there could actually be a value play developing year for you value investors out there. |
| 1:15.0 | So Ron, take note. |
| 1:18.0 | I got my pen. As you mentioned, Chris, data centric revenue, eight and a half billion dollars. That was down 10% from a year ago. |
| 1:25.0 | And they attributed a lot of that to code really weaknesses. PC centric revenue, basically flat. Nothing really to write home about. |
| 1:32.0 | But the thing is, if you go back just a quarter ago to July, they recorded 34% growth in the data center inside of the business. |
| 1:39.0 | PC centric grew 7%. So clearly, they're running into some head ones there. They're seeing some weakness in the Internet of Things department there. |
| 1:49.0 | The revenue fell 33% operating income down 80%. Again, they're attributing all of this related to COVID related demand, we just said there's something to that. |
| 1:58.0 | But remember, they also remain behind the pack on that seven nanometer chip pushing that that farther and farther out. |
| 2:05.0 | I think that you've got this sort of confluence of events here where there's potentially going to be more consolidation in the space, right? |
| 2:12.0 | You've got Nvidia and ARM merging rumors floating around with potential potential type between AMD and Xylanks. |
| 2:19.0 | They're going through rough stretch, but again, I think this is temporary. It seems like a timing thing. It's a big company with a lot of capabilities. So they're down, but I wouldn't count them out yet. |
| 2:30.0 | So the numbers of Netflix are up more than 200% over the past year, but they gave some of that back this week. |
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