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Intel’s Revenue from Enterprise & Government Drops by 47% in Q3 2020, Stock Down by 26% YTD

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The Drop in Intel’s Enterprise & Government Revenue Plunges Stock by 26% YTD

PC chipmaker Intel’s earnings during Q3 2020 reflected the tumultuous conditions of the world economy and increasing competition. According to the research data analyzed and gathered by ComprarAcciones, the company saw a revenue drop of 4% year-over-year (YoY) to $18.3 billion in Q3 2020. In contrast, the company had reported a 20% revenue increase in Q2 2020.

Based on the data from the Steam Hardware and Software Survey, Intel saw its market share drop by 3.3%, from 77.54% in May 2020 to 74.24% in September 2020. During the same period, AMD’s share increased by 3.3%, from 22.45% in May to 25.75% in September.

Intel’s Net Income Declined by 29% YoY in Q3 2020 vs. AMD’s 225% YoY Gain

Intel’s weak performance was to some extent driven by weak its data-centric business revenue which dropped by 10%.

The company’s Data Center Group (DCG) generated $5.91 billion, a 7% drop YoY, and lower than the $6.21 billion that FactSet analysts estimated. Its cloud revenue was among the few good performers in the segment, with revenue up by 15% YoY. However, DCG’s Enterprise & Government segment declined by 47% YoY. Notably, for two consecutive quarters prior to this, it had grown by 30%.

Intel’s operating income dropped by 22% YoY to $5.1 billion as net income sank by 29% YoY to $4.3 billion.

In July, Intel announced the delay of its 7nm chips to 2022, mentioning the possibility of outsourcing part of the manufacturing process.

On the other hand, AMD already rolled out its Ryzen 7nm chips. According to Mercury Research, Ryzen CPUs enabled AMD in Q2 2020 to win back the highest market share it has had since Q4 2013. Its overall x86 CPU market share was 18.3% in Q2 2020.

Moreover, in Q3 2020, AMD had a 37.3% share of the x86 CPU market against Intel’s 62.6%. AMD revenue in Q3 2020 shot up by 56% YoY to $2.8 billion as its net income skyrocketed by 225% YoY to $390 million.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Interswitch is the Most Valuable African Startup

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Interswitch, the leading payment processing company headquartered in Lagos, Nigeria, is Africa’s most valuable start-up at a US$ 1 billion valuation.

Founded in 2002, Interswitch uses switching infrastructure to connect different banks in Nigeria and powered banks’ ATM cards. Presently, the company has over 11,000 ATMs on its network.

In 2010, Helios Investment Partners bought two-thirds of the company and in the following year, Interswitch bought a 60 percent stake in Bankom in Uganda.

Interswitch owns Verve, Nigeria’s most used payment card, and accounted for 18 million of 25 million cards in circulation in Nigeria. The company also owns Quickteller and recently purchased VANSO, a mobile-focused technology provider to banks.

Like Interswitch, Stripe, the company that acquired Nigeria’s Paystack for over US$200 million, is the most valuable startup in the USA at over US$70 billion valuation.

Klarna, Nubank, Paytm and Grab leads in Europe, Latin America, India and Southeast Asia with valuations of US$10.65 billion, US$10 billion, US$16 billion and US$14 billion, respectively.

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E-commerce Black Friday Sales Estimated to Surge by 40% to 10.2 Billion

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The 2020 holiday shopping season will be unique, as the pandemic shifted consumer behavior from retail stores to online shopping. In response, many retailers moved their services online to not miss out on this year’s profits. Atlas VPN team decided to look into how e-commerce sales are set to perform in the upcoming long weekend.

Researchers predict that the US e-commerce revenue will exceed last year’s earnings by 49.5% on Thanksgiving day, totaling $6.18 billion in revenue. Black Friday is calculated to reach $10.2 billion in sales, exceeding last years numbers by 39.4%

Rachel Welch, COO of Atlas VPN, shares her tips on how to stay safe when shopping online during the holiday season:

“Watch out for too-good-to-be-true deals from unknown sellers, as cybercriminals will also expect to turn a profit during the holiday season, even though they are not selling anything, except maybe a bag full of disappointment.”

 Finally, analysis shows that on the last day of the long and full of special offers Thanksgiving weekend, consumers will go all out to bring record sales for e-commerce businesses, adding up to $12.89 billion.

To look at these five days from a wider perspective, e-commerce companies can expect to earn around 39.72% more than they did last year.

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Alibaba Merchants Sell $40B in First Half Hour of Singles Day 2020, More than 2019 Event Full Sales

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Singles Day 2020 was a roaring success, cementing its position as the world’s biggest shopping holiday. Sales across Alibaba’s platforms during the event totaled $74.1 billion, up from $38 billion in 2019.

According to the research data analyzed and published by Stock Apps, within the first 30 minutes of the event, the gross merchandise volume (GMV) surpassed 2019’s full-event sales, reaching $40.87 billion.

Moreover, instead of live events, Alibaba had 400 company executives and 30 celebrities hosting livestreams. Based on a study by Coresight, the Chinese livestream market is set to rack in sales worth $125 billion in 2020, compared to $63 billion in 2019. The US livestream market is a small fraction of that, valued at $5 billion.

China’s Tech Heavyweights Lose $280 Billion in Market Cap

Alibaba Singles Day 2020 dwarfed other major shopping holidays as has been the trend in previous years.

According to Practical eCommerce, Amazon Prime Day 2020 sales totaled $10.4 billion up from $7.16 billion in 2019. Cyber Monday sales in the US amounted to $7.9 billion in 2020 according to Statista. Black Friday and Thanksgiving added $9.7 billion to the figure to make $17.6 billion for the weekend.

Similarly, in 2018, Singles Day sold $30.8 billion while Prime Day sold $4.19 billion and Thanksgiving weekend got $14.2 billion.

However, the 2020 Singles Day event came in the wake of Ant Group’s suspension of a $37 billion listing. The suspension resulted in a $76 billion drop in Alibaba’s market cap, as the tech giant owns a two-thirds stake in Ant Group. Moreover, China’s regulators released anti-trust draft rules prior to the event, aimed at controlling monopolistic behavior.

Following the release, Alibaba shares plunged by 9.8%, as JD.com shed off 9.2%. Tencent similarly saw a 7.39% drop and Xiaomi fell by 8.18%. For the five companies, there was a combined loss of $280 billion in market capitalization.

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