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What could happen to markets if Democrats gain control of Senate?

Former Trump senior economic adviser Steve Moore argues a Democrat sweep could lead to the Dow Jones Industrial Average dropping by 1,000 points.

Latest Stories

  • GameStop Tug-of-War Gives Reddit Army a Win on Record Volatility

    (Bloomberg) -- In the battle between short-seller Citron Research and an army of Reddit-charged day traders, GameStop Corp.’s seemingly endless rally has given the stock’s bulls a win, though not without controversy.GameStop’s 45% gain through Friday comes after it more than doubled the week before and marks the most volatile 10-day period on record, data compiled by Bloomberg show. The stock’s parabolic rise, which has come amid steady and elevated short interest and increasing volume, has showcased the divide between retail bulls and bears betting on a quick return to reality.A backlash against Citron by some vocal Reddit users over its views on GameStop came to a head on Friday when the short seller said it will stop commenting on the stock following the actions of “an angry mob.”“We are investors who put safety and family first and when we believe this has been compromised, it is our duty to walk away from a stock,” Citron managing partner Andrew Left wrote in a Friday letter.The statement came a day after Left said in a YouTube video that he’d “never seen such an exchange of ideas of people so angry about someone joining the other side of a trade,” referring in part to Reddit users who have been particularly vocal on the social media site in seeking to promote their positive opinions on the video-game retailer’s stock.GameStop is up 174% in January to date, with its average daily rolling 10-day volatility peaking at the highest level in the nearly two decades the stock has been trading, data compiled by Bloomberg show. Friday’s fluctuation between gains and losses kept its market value above $3 billion.GameStop representatives didn’t immediately return an email seeking comment.As the saga played out this week, GameStop fans clashed with Citron after the short seller critiqued shares in a tweet on Tuesday and made plans for a Twitter Inc. livestream the following day. The event was initially pushed back for the inauguration of President Joe Biden and then again on Thursday due to attempts to hack the short-seller’s Twitter account.On Thursday afternoon, Left posted a YouTube video where he discussed the company, detailing five reasons why he thinks shares of the Grapevine, Texas-based company will “go back to $20.” That’s less than half the $49.58 the stock was trading at as of 11:38 a.m. on Friday morning.Wall Street analysts have largely stayed quiet amid the stock’s recent bout of volatility. CFRA Research analyst Camilla Yanushevsky reiterated her sell rating on Jan. 15 and credited the bulk of last week’s gains to a short squeeze after activist investor and Chewy Inc. co-founder Ryan Cohen was added to GameStop’s board.Bearish bets have remained steady with 140% of available GameStop shares currently sold short, according to data compiled by S3 Partners. Bears have seen $1.74 billion mark-to-market losses this year, according to the financial analytics firm.“While older existing shorts have been covering some of their positions due to a profit-loss based short squeeze, there is a queue of new short sellers wanting to get short exposure in GME after its recent run-up,” Ihor Dusaniwsky, S3’s managing director of predictive analytics, said by email.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Powerball winner in Maryland should remember this before cashing the $730 million ticket: expert

    Be wise with how you allocate your money, $730 million Powerball winner.

  • Dave Ramsey says these are 10 reasons you're not getting ahead

    The financial expert and radio host says these money blunders can be costly.

  • Ford’s ‘hot’ new cars earn its stock an upgrade to buy from J.P. Morgan

    Ford Motor Co. stock gets an upgrade to buy from J.P. Morgan on expectations for the auto maker's 'incoming tide of hot new products.'

  • Biden’s Student Loan Freeze Shows Path to Erase Billions of Debt

    (Bloomberg) -- Thanks to vagaries of the accounting world, Donald Trump’s administration had a chance in the final weeks of the presidential race to cancel more than $200 billion of student loans with no immediate hit to the Department of Education’s massive portfolio. Yet it didn’t do it.Now, perhaps Joe Biden will.For years, bean counters at the department have been writing down the value of its $1.4 trillion portfolio of student debt as they adopted ever-more-pessimistic views of how much borrowers will repay. In September, the analysts made their biggest adjustment yet, valuing loans at just 82 cents on every dollar owed, down from 104 cents in 2015, records show. The debt is now worth $258 billion less than the amount outstanding.Had officials under Education Secretary Betsy DeVos decided to identify some of the borrowers least likely to repay, and then forgiven those debts, it wouldn’t have put a major dent in the remaining portfolio’s value. Such losses were, theoretically, already reflected anyway.By Wall Street standards, the government’s loan writedowns are gigantic, amounting to $98 billion in September alone. While they have gone virtually unnoticed in the political realm so far, they are almost sure to attract attention now, as consumer advocates urge Biden’s new administration to ease the burden on young professionals and jump-start the pandemic-stricken economy.Some are starting to ask: If the government doesn’t expect to collect hundreds of billions of dollars from borrowers, why not try to erase it now?“Betsy DeVos has already decided that a bunch of this debt is not going to be paid back,” said Mike Pierce, director of policy at the nonprofit Student Borrower Protection Center and a former official at the federal Consumer Financial Protection Bureau. “That makes it much easier for the Biden administration to justify canceling.”The Education Department didn’t respond to messages seeking comment both before and after the change in administration.Loans or RentShortly after his inauguration as U.S. president on Wednesday, Biden asked the department to extend his predecessor’s pandemic policy of waiving interest and to continue letting borrowers skip monthly payments on government-owned student loans until at least the end of September. About 24 million borrowers have stopped payments, department data show.Biden has expressed sympathy for borrowers but suggested he’s reluctant to wipe away debt without an act of Congress. In November, he said student-loan burdens are “holding people up. They’re in real trouble. They’re having to make choices between paying their student loan and paying their rent.”While Wall Street often values its debt holdings based on the prices they would fetch in the market, the government’s markdowns mainly reflect “amounts not expected to be recovered.” From a valuation perspective, that means there wouldn’t be much immediate difference between forgiving doomed loans and waiting for borrowers to turn out their empty pockets.Still, there’s the issue of moral hazard: If authorities offer relief to struggling borrowers, it could create an incentive for others to stop repaying too, causing more of the portfolio to sour.Rush for ReliefMuch of the gap between what is owed and what the government reckons will be repaid stems from loan programs that cap monthly payments relative to borrowers’ incomes. Income-based repayment plans promise the possibility of loan forgiveness after two decades of steady payment, or one decade for public-service workers. As annual borrower defaults climbed past 1 million, Barack Obama’s administration made the repayment plans increasingly generous. Enrollment has tripled since 2014.The anticipated cost of income-based plans has risen, too. The Education Department recently realized borrowers in the plans were earning “substantially” less than it had forecast. So the government cut its projections of borrowers’ future income by 35%, boosting the estimated tab to be forgiven in later years.“There already is significant loan forgiveness,” said Constantine Yannelis, who researches student debt and teaches finance at the University of Chicago’s Booth School of Business. “We’re just talking about moving it up or giving it to borrowers who wouldn’t qualify for it under current rules.”Yannelis said he recently found that debt owed by lower-income borrowers had a lower present value to the federal government than debt owed by high-income borrowers.Rising OddsAcross-the-board loan cancellations make little sense, but the government has all the information it needs to target forgiveness, said Adam Looney, a finance professor at the University of Utah whose research on student loans dates to his time as a tax official at the U.S. Treasury Department. In fact, he said, the Education Department’s own valuation reflects a belief the government will eventually cancel large amounts owed by people earning little or at least too little relative to their debts.Forgiving loans could encourage future students to over-borrow on the hope that their debts will be wiped away, advisers to the federal consumer bureau warned in a report this month. And that could, in turn, remove some of the pressure on colleges to lower their costs.But there is a growing expectation in the public anyway that relief is coming. In a December survey by the Federal Reserve Bank of New York, respondents estimated there is a 39% chance -- more than ever in five years of polling -- that the federal government will cancel some amount of student loans over the next year.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • IBM earnings reveal two major challenges that won't be easily fixed

    IBM has its work cut out for it in pleasing investors in 2021.

  • The Biden Boom Is Coming And These Stocks Could Soar

    With the Biden Administration likely to pump trillions into green energy infrastructure in the coming years, renewable stocks should outperform the market

  • BlackRock raises dividend by 14%, with first new payout in March

    BlackRock Inc. said Thursday that it will raise its dividend by 14%. The investment management's new quarterly dividend of $4.13 a share, up from $3.63 a share, will be payable March 23 to shareholders of record on March 5. The stock slipped 0.1% in afternoon trading. At current prices, the new annual dividend rate implies a dividend yield of 2.23%, compared with the dividend yield for the SPDR Financial Select Sector ETF of 1.95% and the implied yield for the S&P 500 of 1.48%, according to FactSet. BlackRock's stock has gained 16.7% over the past three months, while the financial ETF has rallied 24.1% and the S&P 500 has advanced 12.1%.

  • If I inherit a Roth IRA, are the distributions taxed?

    Q: When the inheritor of a Roth IRA receives the funds, is it true that the distributions would not be taxed? It would be unusual for any taxes to be due on an RMD from an inherited Roth IRA. The only portion of an inherited IRA that could be subject to tax is earnings.

  • 2 “Strong Buy” FAANG Stocks to Watch Heading Into Earnings

    Big Tech has been in the news lately, and not necessarily for the right reasons. Accusations of corporate censorship have hit the headlines in recent weeks. While serious, this may have a salutary effect – the public discussion of Big Tech’s role in our digital lives is long overdue. And that discussion will get underway just as the Q4 and full-year 2020 financial numbers start coming in. Of the FAANG stocks, Netflix has already reported; the other four will release results in the next two weeks. So, the upcoming earnings will garner well-deserved attention, and Wall Street’s best analysts are already publishing their views on some of the market’s most important components. Using TipRanks’ database, we pulled up the details on two members of the FAANG club to find out how the Street thinks each will fare when they publish their fourth quarter numbers. According to the platform, both have received plenty of love from the analysts, earning a “Strong Buy” consensus rating. Facebook (FB) Let’s start with Facebook, the social media giant that has redefined our online interactions. Along with Google, Facebook has also brought us targeted digital marketing and advertising, and the mass monetization of the internet. It’s been a profitable strategy for the company. Facebook’s market cap is up to $786 billion, and in the third quarter of 2020, the company reported $21.5 billion at the top line. Looking ahead to the Q4 report, due out on January 27, analysts are forecasting revenues at or near $26.2 billion. This would be in-line with the company’s pattern, of rising quarterly performance from Q1 to Q4. At the predicted sum, revenues would rise 24% year-over-year, roughly congruent with the 22% yoy gain already seen in Q3. The key metric to watch out for will be the growth in daily active users; this metric slipped slightly from Q2 to Q3, and further decline will be taken as an ominous sign for the company’s future. As it stands now, Facebook’s daily average user number is 1.82 billion. Ahead of the print, Oppenheimer analyst Jason Helfstein boosted his price target to $345 (from $300), while reiterating an Outperform (i.e. Buy) rating. Investors stand to pocket ~26% gain should the analyst's thesis play out. (To watch Helfstein’s track record, click here) The 5-star analyst commented, "[We] anticipate 4Q advertising revenue will handily top Street estimates. We now forecast 4Q advertising revenue +30% y/y vs. Street's +25% estimate based on a regression of US Standard Media Index Data (r-squared 0.95) and accelerating global CPM data from Gupta Media (4Q +35% y/y vs. 3Q's -12%). Additionally, we are very bullish on FB's eCommerce opportunity following conversations with our checks and our initial work conservatively estimating Shops is a $25–50B opportunity vs. current $85B revs. We believe shares currently trading at 7.1x EV/NTM sales offers the most favorable risk/ reward in internet large cap." Overall, the social media empire remains a Wall Street darling, as TipRanks analytics showcasing FB as a Strong Buy. This is based on 34 recent reviews, which break down to 30 Buy ratings, 3 Holds, and 1 Sell. Shares are priced at $276.10 and the average price target of $327.42 suggests a one-year upside of ~19%. (See FB stock analysis on TipRanks) Amazon (AMZN) Turning to e-commerce, we can’t avoid Amazon. The retail giant has a market cap of $1.65 trillion, making it one of just four publicly traded companies valued over the trillion-dollar mark. The company’s famously price is famously high, and has grown 74% since this time last year, far outpacing the broader markets. Amazon’s growth has been supported by increased online sales activity during the ‘corona year.’ Globally, online retail has grew 27% in 2020, while total retail slipped 3%. Amazon, which dominates the online retail sector, is projected to end 2020 with $380 billion in total revenue, or 34% year-over-year growth, outpacing the global e-commerce gains. Cowen analyst John Blackledge, rating 5-stars by TipRanks, covers Amazon and is bullish on the company’s prospects ahead of the earnings release. Blackledge rates the stock Outperform (i.e. Buy), and his price target, at $4,350, indicates confidence in a 31% upside on the one-year time horizon. (To watch Blackledge’s track record, click here) “We forecast 4Q20 reported revenue of $120.8BN, +38.2% y/y vs. +37.4% y/y in 3Q20 led by AWS, advertising, subscription and 3P sales [..] We estimate US Prime sub growth accelerated in 4Q20 (reaching 76MM subs in Dec '20 and ~74MM on avg in 4Q20), helped by pandemic demand, Prime Day in Oct, & elongated shopping period, as well as 1 Day delivery [...] In '21, we expect strong top-line growth to continue driven by eCommerce (helped by COVID pull forward in Grocery), adv., AWS & sub businesses," Blackledge opined. That Wall Street generally is bullish on Amazon is no secret; the company has 33 reviews on record, and 32 of them are Buys, versus 1 Hold. Shares are priced at $3,301.26 and the average price target of $3,826 implies that it will grow another 16% this year. (See AMZN stock analysis on TipRanks) To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

  • David Einhorn — Notorious Tesla Short Seller — Just Had His Best Quarter Ever

    Greenlight Capital hedge fund manager and notorious value investor David Einhorn just released his annual letter to investors, which revealed a record quarter for Einhorn to close out a difficult 2020.Finishing Strong: Greenlight took a massive hit from a large short position in Tesla Inc (NASDAQ: TSLA) in 2020, but Greenlight finished strong with a 25% gain in the fourth quarter. Despite the disastrous Tesla short position, Einhorn was able to salvage a 5.2% overall gain for the fund for the year.The Greenlight letter disclosed several new long positions heading into 2021, including Fubotv Inc (NYSE: FUBO), Danimer Scientific Inc (NYSE: DNMR) and Neubase Therapeutics Inc (NYSE: NBSE), according to Bloomberg. All three stocks were trading higher by more than 10% on Thursday.Einhorn said the Tesla short position was Greenlight's biggest loser in 2020, although he reportedly adjusted the position prior to Tesla's inclusion in the S&P 500.Related Link: Q3 13F Roundup: How Buffett, Einhorn, Ackman And Others Adjusted Their PortfoliosEinhorn's Recent Struggles: Greenlight has significantly underperformed the S&P 500 in recent years as growth stocks have soared and value stocks have lagged. Greenlight reported a 14% net gain in 2019 following a 38% net loss in 2018, its worst year since the fund's inception in 1996.Einhorn gained mainstream notoriety on Wall Street back in 2007 when he disclosed a short position in Lehman Brothers prior to the bank's collapse in 2008. However, he had drawn a lot of criticism in recent years for his persistent short position in Tesla and his often heated public communications with Tesla CEO Elon Musk."TSLA cars are not a fad; if they were, TSLA would sell many more than it does. The fad is in owning TSLA stock," Einhorn said in the letter.As of the end of the third quarter, Greenlight's three largest long positions were Green Brick Partners Inc (NYSE: GRBK), Brighthouse Financial Inc (NASDAQ: BHF) and Atlas Air Worldwide Holdings, Inc. (NASDAQ: AAWW).Benzinga's Take: Economist John Maynard Keynes famously said "the market can stay irrational longer than you can stay solvent," and Einhorn's performance in recent years highlight just how much of a toll a single short position can take on an entire portfolio when the stock in question gets caught in a potential market bubble. Short positions can result in unlimited theoretical losses, whereas standard long positions are capped at just 100% downside.Image credit: PokerListings, YouTubeSee more from Benzinga * Click here for options trades from Benzinga * Why This Enphase Energy Analyst Is Bullish Following Tesla-Driven Sell-Off * Here's How Americans Are Spending Their Stimulus Payments(C) 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • Your next stimulus check — for $1,400 — is about to start moving closer

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  • How Is Your 401(k) Taxed When You Retire?

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  • Robotic Surgery Giant Expects Hospitals To 'Clamp Down' — Shares Dive

    Intuitive Surgical offered a dim view for 2021 late Thursday as hospitals "clamp down on surgeries" amid the raging pandemic. In response, ISRG stock toppled to a month-low on Friday.

  • Trump's Loan Extension on a Manhattan Building Shows His Debt Options

    (Bloomberg) -- A recently refinanced mortgage for a building in Manhattan may show how Donald Trump is able to deal with his upcoming debt maturities, albeit at a higher cost.Investors Bank agreed to extend the mortgage on Trump Park Avenue, a condo building at the corner of 59th Street, by a year to 2021, according to his latest financial disclosure, released hours after he left office.The interest rate increased 25 basis points to 3.5%. It’s at least the second time the due date has been pushed out since the $23 million loan was originated in 2010, records show. It’s now estimated to be less than $10 million.Michael Cohen, Trump’s former attorney and fixer, owns a unit there, and other owners have included former baseball star Alex Rodriguez. When Ivanka Trump and Jared Kushner lived in the building, Rupert Murdoch and his then-wife Wendi Deng reportedly were among their neighbors, Deng said in 2010.It has since lost some of its cachet. Seven of eight units listed for sale last year on StreetEasy failed to sell. Most were then listed for rent. A one-bedroom condo on the ninth floor that was listed for $2.1 million in 2019 could be rented for $3,600 a month as of last week. The Trump Organization developed the building and still owns more than a dozen of the units, which form collateral for the mortgage.Brian Doran, general counsel at Investors Bank’s parent company, declined to comment.Doral ResortThe Trump Organization has almost $600 million of estimated debt coming due within the next four years. These include loans tied to Trump Tower in New York and the Doral Golf Resort outside Miami, where revenues dropped to $44 million last year from $77 million a year earlier.With longtime lender Deutsche Bank AG refusing to work with the former president, and corporations distancing themselves from the family business, that has raised questions over how easily the debt can be refinanced.Trump’s business would be far from alone in changing loan terms during the pandemic. There’s been a significant increase over the past year in commercial mortgage modifications, particularly in New York City, as Covid-19 wrecked property valuations, halted foreclosures and evictions, and allowed millions of people to temporarily stop paying rent.More than 10% of all commercial mortgages that have been bundled into securities have requested some kind of relief from creditors during the pandemic, said Manus Clancy, a senior managing director at data provider Trepp LLC. Most of those debtors were hotels and retail businesses, he said. Residential property owners have yet to face similar levels of distress.Representatives of the Trump Organization didn’t respond to a request for comment.The mortgage on his Park Avenue building was one of a few loans that came due during Trump’s first term. Three mortgages were paid off in 2017, while the due date on a loan for his Seven Springs estate in Mount Kisco, New York, was extended to 2029 from 2019. The rate on that mortgage increased to 4.5% from 4%.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Should Inovio Be On Your Buy List As It Tackles A Coronavirus Vaccine?

    Inovio has thrown its hat into the coronavirus vaccine ring with big biopharma names like Moderna, Johnson & Johnson and Pfizer. But INO stock is volatile on its vaccine news.

  • Bionano Genomics' stock rally result of awareness push in 2019 and 2020 about its genomic technology: analyst

    Shares of Bionano Genomics Inc. gained 10.3% in premarket trading on Friday following a week of heavy trading on the stock. The company's stock price has tripled since the start of the year, closing at $8.27 on Jan. 21, compared to $3.08 on Dec. 31. According to Maxim Group's Jason McCarthy, the increased investor interest in Bionano stems from two years of work to raise awareness of its Saphyr optical genome mapping system and a five-day virtual symposium in January that focused on the technology. "Awareness, adoption, and messaging in 2019 and 2020 culminated with a cytogenetics symposium that has opened the eyes of the genomics world to Saphyr, in our view," he wrote. The Saphyr technology is allowed for research-use only in the U.S. The company launched two public offerings in the last week; the first raised $101.8 million in gross proceeds, the second aims to raise $200 million. The company lost nearly [l:$30 million on sales of $4.5 million|https://www.marketwatch.com/story/bionano-genomics-to-sell-more-shares-stock-falls-2021-01-19?mod=mw_quote_news|NEW] in the first nine months of 2020. Bionano's stock has soared 583.4% over the past, with most of the rally occurring in January. The S&P 500 is up 16.0% over the past 12 months.

  • What Is A Dividend? Plus The 5 Best Dividend Stocks Now

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  • Why Microsoft and 5 Other Software Stocks Could Still Be Buys

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  • Intel Tumbles After New CEO Recommits to Chip Manufacturing

    (Bloomberg) -- Intel Corp. shares tumbled after the incoming chief executive officer pledged to regain the company’s lead in chip manufacturing, countering growing calls from some investors to shed that part of its business.“I am confident that the majority of our 2023 products will be manufactured internally,” Pat Gelsinger said on a conference call to discuss financial results. “At the same time, given the breadth of our portfolio, it’s likely that we will expand our use of external foundries for certain technologies and products.”He plans to provide more details after officially taking over the CEO role Feb. 15, however Gelsinger was clear that Intel is sticking with its once-mighty manufacturing operation.“We’re not just interested in closing gaps,” he told analysts on a conference call Thursday. “We’re interested in resuming that position as the unquestioned leader in process technology.”Keeping production in-house may be bad for Intel because its manufacturing technology has fallen behind Taiwan Semiconductor Manufacturing Co., which makes chips for many of Intel’s rivals. If the U.S. company can’t catch up, its products will become less competitive and it could lose sales and market share.Intel shares fell 5.7%% at 9:36 a.m. in New York on Friday. They have declined about 6% over the last 12 months compared with a 16% increase in the S&P 500.Activist Dan Loeb has suggested the company consider spinning off its manufacturing business. Other investors have been waiting to see if Intel will outsource more production.“Where investors are going to be disappointed is that some were expecting some sort of larger announcement of a strategic partnership with TSMC,” said Edward Jones & Co. analyst Logan Purk.TSMC recently announced capital spending of as much as $28 billion for 2021 to maintain its lead. Purk said Intel would have to increase its own spending massively to try to catch the Asian company.TSMC dropped 3.6%, the most since March 23. Shares of some Intel suppliers also dropped, with Screen Holdings Co. down 3.7% and Tokyo Electron Ltd. declined 1.6%.Read More: Intel Probes Potential Unauthorized Access to Earnings ReportGelsinger is taking the reins of a company in the midst of its worst crisis in at least a decade. It has been the largest chipmaker for most of the past 30 years, dominating the $400 billion industry by making the best designs in its own cutting-edge factories. Most other U.S. chip companies shut or sold plants and tapped other firms to make the components. Intel held out, arguing that doing both improved each side of its operations and created better semiconductors.That strategy has crumbled in recent years as Intel struggled to introduce new production techniques on time. It is now lagging behind TSMC and Samsung Electronics Co., which make chips for Intel competitors, such as Advanced Micro Devices Inc., and big Intel customers including Amazon.com Inc. and Apple Inc.AMD shares rallied in extended trading while Gelsinger discussed his goal of improving Intel’s in-house manufacturing.Intel’s quarterly results, released before the market closed on Thursday, initially sent the shares higher. A hacker accessed sensitive information from Intel’s website, prompting the company to report the numbers earlier than planned.Revenue in the period ending in March will be about $17.5 billion, the Santa Clara, California-based company said. This excludes the memory chip division Intel is selling. Analysts were looking for $16.2 billion on average, according to data compiled by Bloomberg.Intel sees strong demand for laptops through the first half of the year, Chief Financial Officer George Davis said in an interview. Earnings in the second part of the year will partly depend on whether corporations increase spending on new hardware, he added.“The question is will we see support from enterprise,” he said. “They’ve been very quiet.”Intel’s personal computer chip division had revenue of $10.9 billion in the fourth quarter. Analysts expected $9.72 billion. Its higher-margin data center unit generated sales of $6.1 billion. Wall Street was looking for $5.37 billion.In Intel’s data center business, revenue from cloud service providers fell 15% from a year earlier. Enterprise and government sales slumped 25%. Volumes and average selling prices declined. Owners of large data centers are working their way through unused stockpiles of chips.In its PC business, Intel reported a 30% surge in laptop chip sales, even as average selling prices declined 15%.Fourth-quarter profit, excluding some items, was $1.52 a share on $20 billion of revenue, down 1% from a year earlier. Analysts had estimated $1.11 a share on revenue of $17.5 billion.Intel’s gross margin, the percentage of revenue remaining after deducting the cost of production, was 56.8%. This is a key indicator of the strength of its manufacturing and product pricing. Intel has historically delivered margins of about 60%.(Updates with shares in sixth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.