Intel has reported a staggering $16.6 billion loss for the third quarter of 2024, marking the largest quarterly loss in the company’s 56-year history. This loss stems from $15.9 billion in asset depreciation and a $2.8 billion restructuring charge following layoffs of over 15,000 employees. Despite a 6 percent drop in total revenue to $13.3 billion, the company’s projections for the current quarter estimate revenue between $13.3 billion and $14.3 billion, which is still lower than the previous year’s figures. CEO Pat Gelsinger emphasized the urgency in addressing the company’s challenges as Intel’s share price has plummeted 60 percent since he took the helm in February 2021. Meanwhile, competition from firms like Nvidia and AMD in the booming artificial intelligence chip market has intensified, as Intel struggles to regain its footing.
In a historic milestone, Reddit has reported its first profitable quarter as a public company, achieving a net income of $29.9 million on revenue of $348.4 million for the third quarter. This marks a significant financial turnaround, with executives noting much higher adjusted earnings before interest, taxes, depreciation, and amortization than anticipated. Following the announcement, Reddit’s shares surged over 20% in after-hours trading, reflecting strong investor confidence in the company’s performance amidst its recent AI licensing deals.
Intel is increasingly under fire. While I suspect most providers aren’t dependent on Intel, with the Windows 10 to 11 refresh ahead, a significant choice is whether the long idea of “Intel Inside” is significant.
On the other hand, the insight with Reddit is how much data matters. The value of an organization can change significantly with data.