Intel (INTC) fell by 26%, a drop not seen since the Y2K bubble popped 24 years ago. The stock's chances of holding the $21 level are high. Markets are discounting Intel’s weak guidance. The firm may beat expectations after it refreshes its CPU chips in the PC market in October.
Intel dragged Arm (ARM), ON Semiconductor (ON), and Broadcom (AVGO) lower last week. Those stocks are on sale, although relative valuations are still unfavorable.
Shares of social networking firm Snap (SNAP) are on sale. The stock lost 27% in value after posting a two-cent non-GAAP EPS. Revenue grew by 15.9% Y/Y to $1.24 in Q2. For Q3, revenue will grow by 12% - 16%, lower sequentially.
Bank stocks are trading at a discount. Bank of America (BAC), which fell by 8.77% last week, is at a good buying price. However, Berkshire Hathaway (BRK.A) sold 18.41 million shares worth around $767 million between July 25 – July 29. Fortunately, the fund sold the position only to reduce its allocation on a percentage basis.
Nu Holdings (NU) is trading sharply lower. On July 22, J.P. Morgan cut its rating to a hold. Nu offers digital banking services in Brazil and Mexico. Investors are wary of exposure to those two countries when U.S. stock markets weaken.
