Today we had earnings on two companies that are household names, but are they good stocks to own?
Certainly, everyone knows Intel. They make more chips that any other company for year. But we also know that selling chips for PCs is dead weight. What Wall Street really cares about is growth in data centers. Remember, right now data centers is basically like saying Artificial Intelligence because that is the initial economic activity being done right now to provide the computing speed on the cloud to run all this new AI stuff. So, if you are not in the lead in replacing those chips, nobody cares. Let's just say earning the next day saw a massive decline in Intel's price for this very reason.
Next (well, I touched on banks, but let's just move on), we talked about Levi Strauss. Tyler mentioned an analyst that said it was second only to Nike as a brand. I totally disagreed. Sure, everyone knows Levi's and their iconic 501 blue jeans. We get it. You invest in a companies earnings, not how people see your iconic brand. Levi has issues growing. They made a huge blunder and a 90 million write of investing in yoga pants. Management claims they want to be a global denim lifestyle brand. But do kids really want a blue denim handbag with Levi written on it? Nope. Do they want to buy their big bagging jeans with holes in it from Levi? Nope. Does my sone want more Nikes or 501s? He doesn't even know what 501 is, but he knows every variation of Air Jordans.