Closing Bell: Intel Tumbles, Tesla Rebounds, Deckers Rises

On this episode of Stock Movers:

Listen for comprehensive cross-platform coverage of the US market close as heard on Bloomberg Television, Bloomberg Radio, and YouTube with Romaine Bostick, Scarlet Fu, Carol Massar and Tim Stenovec.

- Intel (INTC) shares tumbled nearly 10% during trading Friday after Chief Executive Officer Lip-Bu Tan sparked concerns that he was more focused on cost cutting than restoring the chipmaker’s technological edge. As part of Intel’s second-quarter report, Tan said the company will cancel some factory projects and take a more conservative approach to future spending. Tan called the investments begun under his predecessor, Pat Gelsinger, excessive and unwise.“I do not subscribe to the belief that if you build it, they will come,” he said on a conference call with analysts. At the same time, Tan struggled to give a clear picture of how he’ll make the company more competitive again. Gelsinger had embarked on an ambitious plan to turn Intel into a chip foundry, a business that makes products for outside clients. A key part of that was moving toward a more advanced production technique called 14A. But Tan signaled Thursday that Intel will only roll out that technology tentatively.

- Tesla (TSLA) shares rebounded after a rough stretch following earnings and CEO Elon Musk warning of difficult times ahead. “We probably could have a few rough quarters,” Musk said. “But once you get to autonomy at scale in the second half of next year, certainly by the end of next year, I would be surprised if Tesla’s economics are not very compelling.”

- Deckers (DECK) shares soared during trading on Friday. Fuzzy Ugg boots and chunky Hoka running shoes saw big sales gains last quarter, bolstering financial results for parent company Deckers Outdoor Corp. Net sales for both brands surpassed analysts’ estimates in the fiscal first quarter ended June 30. Ugg sales rose about 19% from a year ago, while Hoka increased roughly 20%, Deckers said in a statement. The company’s shares gained as much as 21% on Friday, the biggest intraday rise since October 2023. The stock had fallen 48% this year through Thursday’s close. Rival Swiss sneaker marker On Holding AG shares also rose 5.3% in premarket trading.

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