January 18, 2013 Motley Fool Money Roundtable Discussion

TL;DR

Intel's profit drops 27% due to declining PC sales, GE's industrial segment performs well, FAA grounds Boeing's Dreamliner due to fire risk, eBay has a strong fourth quarter, Facebook unveils Graph Search, major banks report mixed earnings, and Subway faces backlash for its shorter foot-long subs.

Transcript

welcome to mly full money thanks for being here I'm your host Chris Hill and joining me in studio this week from mly Full inside value Joe Meer from mle Full income investor James early and from million-dollar portfolio Ron gross gentlemen good to see you as Chris oh we got a big show we've got earnings from Intel GE and a whole lot of big Banks we... Read More

Key Insights

• 📱 Intel's decline in profit reflects the ongoing shift in the technology industry towards tablets and smartphones.
• 💪 GE's strong performance in the industrial segment indicates a successful realignment of the company's focus.
• 🤨 The grounding of Boeing's Dreamliner raises concerns about the safety and reputation of the aircraft.
• 💪 eBay's strong fourth quarter highlights the growth of mobile transactions and the potential for future success.
• ❓ Facebook's Graph Search has the potential to compete with Google in the future, depending on how it is developed and used.
• 😀 Major banks continue to face challenges, with some performing well while others struggle with legal issues and underperforming assets.
• ✊ Subway's reputation damage reflects the power of social media in highlighting company practices.

Questions & Answers

Q: Why did Intel's profit decline and what is the future outlook for the company?

Intel's profit declined due to the decline in PC sales and increased competition from tablets and smartphones. The company is working on getting a stake in the tablet market, but the outlook remains uncertain.

Q: What contributed to GE's strong performance in the fourth quarter?

GE's industrial segment performed well, with profits up 133%. The company has been focusing on shifting away from financial services and back to its industrial roots, which has been successful.

Q: Why did the FAA ground Boeing's Dreamliner and how does it impact the company?

The Dreamliner was grounded due to fire risk in its batteries. This is the first grounding of a fleet of commercial aircraft since 1979. It raises concerns about the safety of the aircraft and may impact Boeing's reputation and future orders.

Q: Why did Subway face backlash and how is it affecting the company?

Subway faced backlash when a customer discovered that their foot-long subs were actually 11 inches long. This caused reputation damage for the company, but it remains to be seen if it will have a significant impact on their bottom line.

Summary & Key Takeaways

• Intel's fourth quarter profit declined 27% due to a downturn in PC sales and the rise of tablets and smartphones.

• GE's industrial segment performed well, with profits up 133% and a realignment to focus more on industrial operations rather than financial services.

• FAA grounded Boeing's Dreamliner due to fire risk, marking the first grounding of a fleet of commercial aircraft since 1979.

• eBay had a strong fourth quarter, with revenue up 18%, driven by growth in their marketplace and mobile transactions.

• Facebook unveiled Graph Search, a new search engine within their platform that has the potential to compete with Google in the future.

• Major banks reported mixed earnings, with Morgan Stanley and Goldman Sachs performing well, while Bank of America and Citigroup struggled with ongoing legal issues and underperforming assets.

• Subway faced backlash when a customer in Australia discovered that their foot-long subs were actually 11 inches long, causing some reputation damage for the company.