Intel and Reddit Shares Plunge Nearly 30% Following Weak Forecasts and Traffic Declines
Intel (INTC) and Reddit (RDDT) experienced historic single-day losses of approximately 29% following their respective earnings reports. Despite Intel beating third-quarter revenue expectations with $16.5 billion in sales, the company issued a weak fourth-quarter outlook that fell significantly short of analyst estimates. The downturn is driven by declining PC shipment forecasts and an expected margin compression due to high memory chip costs for AI data centers. Reddit also saw a massive sell-off despite reporting 53% revenue growth. The decline was triggered by management's warning regarding a meaningful acceleration in the loss of search engine referral traffic, attributed largely to competition from AI models. While both companies posted strong quarterly results, the market reacted sharply to the forward-looking guidance and structural shifts in their respective sectors.
Topics: AI impact on tech stocks Intel earnings Reddit earnings Stock market volatility
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