Addition by Subtraction: Intel’s New Strategy Energizes Investors
The stock market often sends signals that appear to be confusing. This week, Intel Corporation (NASDAQ:) provided a classic example. On June 24, the company announced it was shutting down its automotive processor business and laying off most of the division’s employees.
In a seemingly counterintuitive response, the stock surged over 6%, pushing into the $22.50 range. This positive reaction raises a key question for investors: Why would the market reward a company for news that, on the surface, seems negative?
The answer lies in a deeper interpretation of the move. Investors are viewing the shutdown not as a retreat, but as a decisive and necessary step toward creating a leaner, more focused, and ultimately more profitable company.
It…
