WSJ What’s News: Intel Spikes, Walmart Slides, Bumble Fumbles – February 22, 2025

Host: Francesca Fontana, The Wall Street Journal

Market Overview: S&P 500 Hits Record High Amid Caution

In the latest episode of WSJ What’s News, host Francesca Fontana opens the discussion by highlighting a robust performance in the stock market. “Tuesday started on a high note with the S&P 500 notching its second record high close of 2025,” Francesca reports at [00:33]. Despite this achievement, she underscores a prevailing sense of caution among investors due to ongoing concerns about tariffs, geopolitical tensions, and inflation.

Francesca references a recent survey conducted by the American Association of Individual Investors, revealing a notable increase in bearish sentiment. “Bearishness among individual traders, the percentage who expects stock prices to fall over the next six months reached about 47% for the week ending February 12th. That's the highest since November 2023,” she notes at [01:20]. This uptick in pessimism reflects growing anxiety over market stability and economic uncertainties.

Intel’s Strategic Challenges and Market Reaction

One of the episode's focal points is Intel's turbulent position in the semiconductor industry. Francesca delves into reports suggesting that industry giants Broadcom and Taiwan Semiconductor Manufacturing Company (TSMC) are considering strategic moves that could potentially split Intel's core operations. “Broadcom has been looking at Intel's chip design and marketing business, while Taiwan Semiconductor Manufacturing has its eye on controlling some or all of Intel's chip plants,” she explains at [01:55].

These prospective deals are still in the early, informal stages and do not involve collaboration between Broadcom and TSMC. However, the possibility of Intel being divided raises significant questions about its future as a dominant player in chip manufacturing. Francesca attributes Intel's current vulnerabilities to several factors, including manufacturing setbacks, a costly turnaround strategy, and missteps in the burgeoning AI sector.

The market's reaction to these developments was swift. Francesca highlights that Intel's shares surged by “a steel 16% on Tuesday” following the news ([03:10]). Although the stock later moderated, it maintained a weekly gain of 5.3%, signaling investor optimism despite the underlying challenges.

Walmart’s Earnings Miss and Investor Sentiment

Shifting focus to the retail sector, Francesca discusses Walmart's recent earnings report, which had a pronounced negative impact on the stock market. “On Thursday, Walmart's earnings rained on the index's parades,” she states at [04:30]. While Walmart showcased strong profits and revenue during the holiday quarter, the company issued weaker-than-expected guidance for the upcoming year. This cautious forecast sparked doubts about the strength of US consumer spending.

The immediate effect was a sharp decline in Walmart's stock. “Walmart shares fell 6.5% on Thursday and declined further on Friday, ending with a weekly loss of 8.9%,” Francesca reports at [05:15]. This drop not only affected Walmart's standing but also had a ripple effect across the broader market indices, contributing to overall weekly losses.

Bumble’s Sharp Decline Amid Struggles in the Online Dating Sector

In a surprising turn, one of the week's most significant losers was Bumble, the popular dating app company. Francesca outlines Bumble's difficulties in reversing its financial trajectory. On February 21st, Bumble forecasted lower-than-expected earnings for the first quarter, which disappointed investors and led to a dramatic decline in its stock price. “Bumble shares lost a whopping 30% Wednesday and on the week lost 38%,” she reports at [07:45].

Francesca also points out that Bumble is not alone in facing challenges within the online dating industry. Earlier in the month, Match Group, which owns platforms like Tinder, Hinge, and OkCupid, replaced its top executive, experienced a drop in fourth-quarter earnings, and forecasted sales below expectations. In response to these struggles, Bumble announced plans to attract more users and improve its monetization strategy, including winding down two of its dating apps.

Conclusion: Investor Sentiment and Market Watch

Francesca wraps up the episode by encouraging listeners to engage with her opinions on the market. “Please email me at francesca.fontanasj.com I am really looking forward to hearing your 2 cent,” she invites at [06:00]. She also directs interested listeners to her column in the Wall Street Journal's Exchange section for more comprehensive coverage of the week's market movers.

Produced by Pierre Bienname with supervising producer Talia, this episode of WSJ What’s News provides a detailed analysis of significant market movements driven by corporate earnings reports and strategic industry shifts. As always, Francesca Fontana offers insightful perspectives tailored for investors seeking to navigate the complexities of the financial landscape.

For more in-depth analysis and updates on the stock market’s biggest moves, subscribe to WSJ What’s News and follow Francesca Fontana’s column in the Wall Street Journal’s Exchange section.