HomeLatestIntel is Counting on Mobileye IPO to Boost Q2 Share Prices
Intel is Counting on Mobileye IPO to Boost Q2 Share Prices
January 26, 2022 at 11:53 am - by Kevin Flynn
Sci-Fi writers around the world are rejoicing as one of their shared visions becomes a reality. Mobileye, a global pioneer in autonomous vehicles (AVs) will start operating robotaxis in two international cities in 2022. The AVs navigate with a camera-based system that utilizes lidar and radar. Is anyone else having a “Total Recall” flashback?
This is happening in the real world, not the Metaverse. Mobileye, which promotes itself as an Intel company, is expected to go public in Q2 as an independent entity. Intel will still hold a majority position, but will the IPO boost their lagging share prices? You have the answer to that question if you’re hearing this for the first time. No one knows it’s happening.
Why Meme Stocks are Outperforming Tech Stocks
The democratization of investment markets has opened doors that have been inaccessible to the masses since the Dutch East India Company opened the Amsterdam Stock Exchange in 1602. In 2022, we have retail trading options. Anyone can buy stocks, bonds, ETFs, and cryptocurrency without the assistance of a broker. I’m a strong proponent of that.
Unfortunately, many investors don’t do their research. They get stock tips at parties and on their social media channels. That’s why GameStop (GME) outperformed everyone in 2021. The Reddit Raiders drove it all the way up to $325 a share to spite the hedge funds. The company isn’t worth that much. It opened at $96 this morning. Expect it to fall further.
Stocks like GameStop and AMC Entertainment (AMC) made a profit for investors last year because they were promoted in a social media community. Intel Corporation (INTC), which has hovered around $50 a share since 2018, doesn’t have that advantage. The Mobileye IPO is a cool news story today, but it won’t translate into rising share prices when it happens.
Intel Makes USN Top Seven List for AV Stocks
Before social media, there was real media, like US News (USN) and World Report. Sadly, new breed investors don’t read news publications. If they did, they would have seen that Intel is on USN’s “Top Seven” list of AV stocks to invest in. They came in fourth behind Volkswagen (VWAGY), Alphabet (GOOG), and General Motors (GM).
As a seasoned investor with a formal education in finance, I look at that list and see a solid car company trading on the OTC market, a blue-chip tech stock, and a historical US mainstay. They’re all decent long-term investments that you won’t see on Reddit. To that crowd, this list is a name they can’t pronounce, the evil empire, and Tesla’s nemesis.
Don’t take this the wrong way. I want everyone to have access to stock market investing. What I’d like to see is more education on how and why to invest. Artificially inflating share prices distorts market performance and deceives real investors. GameStop is closing 1000 stores this year. They’re broke. You made it look like they weren’t. Not cool, dude.
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About the Author
Kevin Flynn
A former financial professional and founder of AdvisorScale Financial Writing, Kevin lives in Leominster, Massachusetts with his wife Evelyn, two cats, and nine wonderful grandchildren.