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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”

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Stock News

Is Intel the Key to the Next Tech Boom?

Timothy SykesAvatar
Written by Timothy Sykes
Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs

Recent reports suggest a strong performance for Intel Corporation, with its stocks showing a 3.41 percent gain on Friday. Notably, this uptick comes in the wake of Intel’s strategic advancements in their chipset technology, receiving positive market sentiment. Investors are optimistic about the company’s upcoming product launches and partnerships, which could further drive its market position.

  • Up to $3B awarded to Intel under the CHIPS and Science Act by the Biden-Harris administration for the Secure Enclave program, enhancing the domestic chip supply chain.
  • Intel and Amazon Web Services (AWS) announced a major multi-billion-dollar collaboration for custom AI fabric chip and custom Xeon 6 chip production.
  • Intel’s stock soared 6.4% after unveiling plans to make its foundry business an independent unit under the company.
  • Northland’s valuation report projects Intel’s shares worth $42, citing high confidence in the company’s military-grade chip manufacturing.
  • Intel’s earnings update reveals strategic shifts and investments aiming to secure its leading position in the semiconductor industry.

Candlestick Chart

Live Update at 15:04:10 EST: On Friday, September 20, 2024 Intel Corporation stock [NASDAQ: INTC] is trending up by 3.41%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Intel’s Recent Earnings: A Quick Overview

When reading Intel’s recent earnings report, it feels like deciphering the playbook of a football game tape. Numbers don’t often lie, but they also don’t reveal easy paths. Let’s break this down a bit.

Financial Metrics Highlights:
1. Revenue: Pulled in $54.23B, not an amount to sneeze at, but revenue over the last three years shows a 10.78% decline. Even a five-year view records a 4.77% dip.
2. Margins: Gross margin stands at 41.4%, which means Intel pockets about 41 cents on the dollar after covering production costs. Compare this to high-flying peers, and it’s clear there’s room for growth.
3. Debt and Equity: With total liabilities at roughly $85.77B and equity at $115.23B, Intel’s debt-to-equity ratio sits at an innocuous 0.46. This implies financial stability, but leveraging more debt could either be a boon if managed right or a bust if not.

Charting the Course: Stock Price Insights

Here is where things get interesting. Recently, Intel’s stock ripped through some exciting price actions. On Sep 16, 2024, the closing price was $20.91, a jump from $19.66 just a few days before.

From Sep 6 to Sep 20, the stock showed volatility. Spiking from $19.28 to a high of $23.14 – a 20% surge in a matter of days! This data quickly paints a picture of buoyant market expectations and an ephemeral boost.

Financial Strength and Metrics:

Metrics such as Intel’s EBIT margin at 10% and cash flow statements reveal a nuanced financial health. Cash from operating activities is $2.29B with free cash flow at -$3.39B. This tug-of-war is a common sight in capital-heavy industries. They generate cash but deploy it eagerly into growth-driven projects.

Given its EBITDA margin of 18.4%, Intel’s operational efficiency is acceptable but reflects a middle-of-the-road sentiment compared to top-tier tech giants. Their Return on Equity (ROE) at 12.65% signals that investors can still expect some returns, but the pitfall of heavy R&D and manufacturing costs indeed dangles like a sword of Damocles.

More Breaking News

Market Implications:

Putting these financial realities side by side with Intel’s recent moves paints a promising picture. Their substantial investments in expanding capabilities, especially through partnerships with AWS and the Biden administration’s support, signal a formidable attempt to mitigate previous revenue declines.

The News Behind the Stock Surge

Securing the Chip Chain: Intel’s $3B Award

Intel recently secured up to $3B from the Biden-Harris administration under the CHIPS and Science Act. The Secure Enclave program, central to this award, aims to build a reliable domestic semiconductor manufacturing infrastructure. One can’t underscore the national importance here. In today’s geopolitical arena, having a robust, domestically-produced semiconductor supply chain can be likened to having a fortified castle during medieval times.

Partnering with Amazon: Pioneering Custom AI Chips

The billion-dollar collaboration with AWS stands out. Intel will produce a custom AI fabric chip on Intel 18A and a custom Xeon 6 chip on Intel 3. This collaboration solidifies Intel’s strategic pivot towards cutting-edge AI technology. Imagine building the most luxurious and customized sports car in collaboration with a renowned automobile brand; that’s essentially what Intel is embarking upon with AWS—engineering the smart brains of AI applications.

Intel’s Foundry Transformation

On Sep 17, 2024, Intel disclosed plans to spin its foundry business into an independent division. This move is seen as a masterstroke. By isolating its foundry arm, Intel can invite external investment, enhancing its infrastructure without weighting down the core firm with additional debt.

Strategic Evaluations and Analyst’s Expectations

Northland emphasizing a sum-of-the-parts valuation pegging Intel’s share at $42 bolsters market confidence. It strategically aligns Intel as a key player in military and intelligence tech, creating a potent mix of cutting-edge capabilities paired with trustworthy governance.

Earnings Report Insights and Strategic Shifts

Intel’s recent earnings call showcased substantial strategic shifts spearheaded by CEO Pat Gelsinger. By simplifying its product lines and integrating automotive ventures into core business groups, Intel aims to strengthen its central portfolio and further investments into AI. This is akin to a seasoned gardener pruning plants for healthier growth.

Heading Into The Future: Intel’s Strategic Moves in Focus

Intel’s collaboration spree headlined by the alliance with AWS marks a notable pivot. The AI chip agreement is more than a routine contract; it solidifies Intel’s footprint in a fiercely competitive space. By leveraging the advanced Intel 18A node, Intel aims to capture a slice of the burgeoning AI-drivel chip market. This can be viewed as Intel’s way of saying, “We’re not just surviving; we’re thriving.”

The Pentagon’s $3.5B Chip Collaboration

Furthermore, the $3.5B collaboration with the Pentagon to manufacture advanced semiconductors under the Secure Enclave program adds a significant feather to Intel’s cap. The initiative underscores Intel’s role as a strategic partner in national security, manufacturing sophisticated chips for military applications. Such partnerships not only bring financial hypes but also earn Intel a formidable reputation.

Expansion with AWS Functions

The AWS partnership isn’t just noteworthy for its revenue implications. It elevates Intel into a leadership position in AI and custom chiplets manufacturing. As AWS plans a $7.8 billion investment in Central Ohio, housing Intel’s manufacturing prowess, it signifies a massive technological and economic boost for the region. This collaboration is shaping the future of AI ecosystems in America.

Northland’s Valuation: A Bullish Outlook

Examining Northland’s optimistic stance is revealing. Their prediction values Intel’s stock at approximately $42, and comes on the back of solid Intel-U.S. government relations ensuring a resilient chip supply chain. For investors and stakeholders, this positions Intel not just as another tech giant but a critical entity capitalizing on trust and innovation.

A Differently Structured Foundry Business

Finally, recent internal restructuring SEP 17, 2024, saw Intel further segregating its foundry business. This move is poised to drive more flexibility and focused investment into advanced manufacturing. By creating an independent subsidiary, Intel can draw outside capital, distributing financial loads while exploiting growth avenues.

Conclusion: Steering Through Rough and Smooth Waters

Intel is navigating through a sea of innovation and strategic expansions. Their substantial national funding and alliances like AWS steer them on paths of growth while securing a national chipset fortress.

While revenue trends in recent years aren’t inspiring, Intel’s strategic transformations coupled with analyst optimism form a strong counterbalance. Their collaborations signal a future firmly planted in the high-tech landscape, paving the way to potential peaks – should their calculated risks pan out effectively.

Ultimately, it’s about how these strategic moves lift Intel’s market presence. Bolstered by robust foundational investments and optimistic future valuations, Intel seems poised not just to weather the competitive tech arena but potentially set new benchmarks.

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”