{"id":1488344,"date":"2024-09-06T17:05:00","date_gmt":"2024-09-06T21:05:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1488344"},"modified":"2024-09-06T17:05:00","modified_gmt":"2024-09-06T21:05:00","slug":"mobileye-hits-record-low-on-report-intel-may-offload-partial-stake-in-public-market","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/mobileye-hits-record-low-on-report-intel-may-offload-partial-stake-in-public-market\/1488344\/","title":{"rendered":"Mobileye Hits Record Low On\u00a0Report Intel May Offload Partial Stake In Public Market\u00a0"},"content":{"rendered":"

Mobileye Hits Record Low On\u00a0Report Intel May Offload Partial Stake In Public Market\u00a0<\/span><\/p>\n

\n

Shares of Israeli autonomous driving company Mobileye Global plunged to a record low on Friday in New York after a\u00a0Bloomberg<\/a> report, citing sources, indicated Intel could be preparing to dump some of its stake in the software company\u00a0on the public market or through a sale to a third party. This comes as the\u00a0dumpster fire at Intel rages on as Intel CEO Pat Gelsinger prepares\u00a0to pitch\u00a0the chipmaker’s board of directors on a turnaround plan.<\/p>\n

The chipmaker could offload some of its 88% holding in Mobileye on the public market or via a sale to a third party<\/em><\/strong>, according to the people, who asked not to be identified because the information was private. Mobileye has a board meeting later this month in New York, where Intel’s plans will be considered, one of the people said. -BBG<\/em><\/p>\n

Mobileye provides software and hardware for self-driving systems. Intel already dumped a $1.5 billion stake in Mobileye last year.<\/p>\n

Shares of\u00a0Mobileye are down nearly 73% on the year. Any selling by Intel in the public markets could crush shares even lower. As of Friday morning, Mobileye has a market cap of around $9.56 billion. About 14.5%, or approximately 13.4 million shares of the company’s float is short.\u00a0<\/p>\n

<\/a><\/p>\n

In August,\u00a0Mobileye slashed its\u00a0annual revenue and profit forecasts due to dwindling demand for its\u00a0driver-assistance chips in China. A slowdown in the global automotive market, including EVs, has translated into\u00a0fewer orders for Mobileye’s chips. Also, a dismal economic recovery in China and weakening growth in the US have weighed on\u00a0Mobileye.\u00a0<\/p>\n

Last month,\u00a0RBC Capital Markets analyst Tom noted, “The narrative on Mobileye is more tied to SuperVision than macro. Winning SuperVision is a huge aspect and that’s what the stock is trading on… More contracts were supposed to come in H2 and we’re already in August, so some investors might be getting a little impatient.”\u00a0<\/p>\n

Also last month, Bloomberg reported\u00a0Morgan Stanley and Goldman Sachs bankers<\/a> were working with\u00a0Intel to advise on several\u00a0scenarios that could stop the\u00a0market cap\u00a0hemorrhaging, including a\u00a0split of the chipmaker’s product design and manufacturing businesses.<\/p>\n

<\/a><\/p>\n

A separate report from Reuters this week said Intel’s\u00a0plan includes<\/a> cost-cutting measures like selling businesses, such as the programmable chip unit Altera, which Intel can no longer support from its sliding profits.\u00a0<\/p>\n

Gelsinger and senior executives are set to present a turnaround plan to the board of directors in mid-September. We expect more details to emerge around that time.\u00a0<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nFri, 09\/06\/2024 – 13:05<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/mobileye-hits-record-low-report-intel-may-offload-partial-stake-public-market<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Mobileye Hits Record Low On\u00a0Report Intel May Offload Partial Stake In Public Market\u00a0 Shares of Israeli autonomous driving company Mobileye Global plunged to a record…<\/p>\n","protected":false},"author":0,"featured_media":1488345,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-1488344","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbimBl-6fby","jetpack_featured_media_url":"https:\/\/bugaluu.com\/news\/wp-content\/uploads\/sites\/3\/2024\/09\/Snag_2d228eeb-WkoLlM.png","_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1488344","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1488344"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1488344\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1488345"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1488344"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1488344"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1488344"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}