Intel slips following TV service reports, Bernstein note

|About: Intel Corporation (INTC)|By:, SA News Editor

Intel (INTC -2.1%) is selling off a bit after multiple reports emerged indicating its Web TV service plans are in jeopardy, and Bernstein's Stacey Rasgon (Underperform) declares his existing views on slowing cash-return growth are playing out.

Variety has joined Bloomberg and AllThingsD in reporting on Intel's TV service woes. Sources tells the magazine Intel has pushed back its launch date to 2014, and held talks with Netflix and Liberty Media that went nowhere.

Rasgon, who in the past has pointed out Intel's dividend/buyback efforts have led its net cash position to fall below $5B, now states Intel "has little headroom" to raise its cash-return rate above current levels of 45%-55% of TTM free cash flow, giving revenue pressures and rising capex.

He also thinks interest rates are a concern, given high-yield stocks tend to underperform during periods of rising rates. Intel's yield is currently at 3.8%.

Earlier: Intel invests in Google Glass rival, talks up wearables