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Here’s why Intel’s stock just dropped 10% after reporting earnings

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The third-quarter earnings cycle is just getting underway, but we’ve already seen a few companies post numbers that investors did not like. Netflix missed on several metrics yesterday and was punished, and today Intel is joining the video streaming giant in stock-market purgatory.

Intel shares are off around 10% in after-hours trading after the chip company reported its Q3 data. Investors had expected Intel to report an adjusted $1.11 in per-share profit, off around 22% from the year-ago period. They also expected it to report revenues of $18.26 billion in Q3, down a more modest 5% compared to the year-ago Q3.

Notably, Intel beat revenue expectations with top line of $18.3 billion, and met earnings-per-share estimates of $1.11, on an adjusted basis.

So, why are Intel shares sharply lower?

Quick consensus appears to point to weakness in the company data-focused business unit, the smaller of Intel’s two halves (the other focuses on PC chips). Inside the data-side of Intel, its Data Center Group (DCG) had mixed results, including cloud revenue growth of 15%. However, at the same time, the DCG’s “Enterprise & Government” business shrank 47% compared to the year-ago period, following what Intel described as “two quarters of more than 30 percent growth.”

Off that weakness, the resulting top line miss was sharp, with the market expecting $6.22 billion in revenue and DCG only delivering $5.9 billion.

Intel blamed COVID-19 for the weak economics conditions at play in the result. The company also highlighted COVID-19 when it discussed results from its internet of things business and memory operation, which declined 33% and 11% on a year-over-year basis, respectively.

Perhaps due to COVID-19’s recent resurgence in both North America and Europe, investors are concerned that the macroeconomic issues harming Intel’s growth could continue. If so, growth could be negative for a longer period than anticipated. That perspective could have led to some selling of Intel’s equity after the earnings report.

Could guidance have a part to play in Intel’s share price decline? Probably not. Better than what it reported for Q3 2020, Intel’s forward guidance shows a small revenue beat versus expectations, and a small profit beat as well. Intel forecasts revenues of $17.4 billion for Q4 2020 and adjusted earnings per share of $1.10, while the street was looking for $17.34 billion in top line and adjusted earnings per share of $1.06.

Given that Intel is prepped to best expectations in Q4, it’s hard to pin its share-price declines on guidance. That leaves the weakness in its data business as the most obvious culprit.

It is dangerous to over-describe why a stock or a group of stocks move at any given time. But in this case, it seems plain that the revenue miss inside Intel’s data business was at least a portion of why it shed value. As to whether the company’s COVID-19 notes are valid is up to you and how you handicap the broader economy.

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Conquer Your Pup’s Dander and Fur With $700 Off a Cobalt or Charcoal Bobsweep PetHair Plus Robot Vacuum

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Best Home DealsBest Home DealsThe best home, kitchen, smart home, and automotive deals from around the web, updated daily.

Bobsweep PetHair Plus Robot Vacuum & Mop (Cobalt) | $200 | Best Buy

Bobsweep PetHair Plus Robot Vacuum & Mop (Charcoal) | $200 | Best Buy

Allergies can be bad enough as the seasons change. Don’t let pet hair and dander add to that by vacuuming it up early and often. That chore is easier said than done— unless you have a robot vacuum to do the work for you. This lovely bright cobalt Bobsweep PetHair Plus robot vacuum and mop, only $200 today at Best Buy seems like an ideal option. That’s a whopping $700 off, by the way.

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You can get the same deal for the charcoal version of the robot vac, too. This model is not only specially made for picking up pet hair, it self docks and charges when it’s finished with the work.

It also comes with a mop attachment, so it can take care of those kitchen floors for you as well. Grab it while it’s still available for this fantastic price!

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Apple will replace AirPods Pro for free with faulty noise cancellation, static or crackling

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Today, exactly one year after Apple first launched the AirPods Pro — and thus the same day the very first AirPods Pro owners will see their one-year warranties expire — Apple has launched a repair program that offers free repairs or replacements for another whole year if your AirPods Pro experience issues with noise cancellation or static.

Specifically, Apple will fix:

Crackling or static sounds that increase in loud environments, with exercise or while talking on the phone

Active Noise Cancellation not working as expected, such as a loss of bass sound, or an increase in background sounds, such as street or airplane noise

Apple says only a “small percentage of AirPods Pro” are affected by the issues, but it apparently wasn’t just an early batch — Apple says affected units were manufactured “before October 2020,” meaning every AirPods Pro ever made might be eligible. That’s quite a recall if so. Apple says it will repair faulty AirPods Pro for two years after you first buy them.

We’ve heard complaints about degraded noise cancellation before, and at least one Verge editor has replaced their AirPods Pro under warranty. It’s nice to hear that Apple isn’t just cutting buyers off as soon as that warranty expires.

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This 55″ 4K TCL Smart TV Hangs on Your Wall for $200

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Best Tech DealsBest Tech DealsThe best tech deals from around the web, updated daily.

TCL 55″ S434 4K Smart TV | $200 | Best Buy

Best Buy has an insane deal going for a brand new 55″ 4K TCL smart TV. It’s the S434, which is pretty baseline for TCL’s lineup, but at just $200, there’s little to complain about. TCL’s panels are plenty sharp and accurate, and with this set, you’ll get HDR10 compliance for enhanced color and brightness in supported games and video content. This model has Android TV onboard for all your app needs, and with an included voice remote, all your favorite content is just a shout away with the help of Google Assistant.

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