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Tech Industry

Intel stock closes down again

The chipmaker's legion investors continue their retreat from the company's stock.

Intel's (INTC) troop of investors continued their withdrawal from the company's stock today, driving down its price for the third consecutive day of trading.

The chip giant, which rocked the entire stock market Friday with an announcement that its quarterly revenues and earnings would fall short of Wall Street's estimates, closed at 145 a share today, down from its close of 149-3/4 yesterday. The stock was again one of the most actively traded of the day.

But despite the stock sell-off and downgrading by some brokerage firms, some analysts say Intel's falling price is not necessarily cause for alarm.

"The last couple of days is not the worst or the most traumatic it's been for the stock. There is still a lot of confidence in the company," said David Wu, an analyst with the Chicago Corporation.

He added that most technology stocks were down today, following a series of preliminary earnings announcements by Intel, Seagate (SEG), and Cabletron Systems (CS) that indicated slow revenues and earnings for the quarter.

On Friday, Intel's stock plummeted as low as 140 during the day from its close of 163-3/4 on Thursday. The stock later recovered some of its lost ground to close at 151-1/2.

"The quicker stocks go down, the quicker they tend to come back up. It's a discounting mechanism," Wu said.

Intel's stock was last at its current level in late April, closing at 146-3/8 on April 28. Earlier that month, the stock fell 11 percent over three days to 130-1/2 on April 11 from 146-5/8 on April 8, as Wall Street tried to gauge the depth of Intel's expected price cuts for its microprocessors.

Intel is an investor in CNET: The Computer Network.