Tech giant Intel (Nasdaq:INTC) is a mess of contradictions. It is a tech bellwether, but one with unimpressive growth over the past decade. It is a pioneer in the microprocessor sector, but questions swirl about its ongoing relevance even as it posts an all-time best quarter. Worse still, it is a story that does not lend itself to sound bites and simplification.
The Quarter That Was
By any reasonable standard, this was a great quarter for Intel. Revenue jumped 34% from last year and rose 5% sequentially to an all-time best of $10.8 billion. This growth was fueled by strong demand for PC and server chips, as PC-related revenue climbed 31% from the year-ago level.
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Software companies inevitably sow the seeds of their own destruction. If a company develops a good product and "proves" that a market is lucrative, competition is sure to come running. Worse still, big companies are by their very nature not as nimble or risk-tolerant as start-ups, so there is always a host of wannabes nipping at the heels of successful companies.
Despite all of that, Adobe (Nasdaq:ADBE) has managed to become the acknowledged top dog in a market segment that is still poised for strong growth. Better still, the company seems to be navigating the latest prophecies of doom pretty skillfully.
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