AMD Stock Plummets 25% in Response to K10 Release - Investors Scared

[TechnologyCoordinator]

AMD One Month Ago: $14.49 per share
AMD Today: $10.83 per share

AMD shares were worth 33% more one month ago than they are today.

http://finance.google.com/finance?q=AMD
http://finance.yahoo.com/q?s=aMD


Don't blame this on the stock market. If the stock market lost 25% of its value in a month it would be a disaster. That would be like the Dow Jones going from 13,000 to 9,750. AMD losing 25% value in one month is just par for the course they're on.

 

[itotallybelieveyou]

DDDDDDAMN?!!!

 

[NMDante]

It's the entire market, not just AMD.
Yes, AMD is getting smacked more, but its not because of Phenom's launch or its results.
Look at all the other semiconductor stocks - they got slapped around, too.
The only reason why AMD is hurting worse, is the debt it's carrying around right now. Add to that the dilution of its stock due to the last big sale it did.

The market sucks butt right now, and everyone is getting b*tch slapped for it. Not just AMD.

 

[starcraftfanatic]

dang, sucks for them

 

[TechnologyCoordinator]

It's the entire market, not just AMD.

No, it's not the market. AMD has lost 25% percent of it's value per share in the last month. If the market did that we'd call it a crash!


Dow Jones Industrial Average One month ago: 13,521.62
Dow Jones Industrial Average today: 12,799.04
Difference: 722.58
DJIA Loss: 5.3%

Intel One Month Ago: 25.95
Intel Today: 24.63
Difference: 1.32
Intel Loss: 5.0%

AMD One Month Ago: $14.49 per share
AMD Today: $10.83 per share
Difference: 3.66
AMD Loss: 25.2%

So Intel is actually performing better than the market, while AMD's loses are 5 times greater than what the market is experiencing.

AMD simply can't blame the market when they are 5 times worse and Intel is actually doing better than the market.

 

[jimmysmitty]

Intel is fluxing between 25-27 dollars every week(I check the stock market at work every day). Now since Intel has been selling so well most of Q4 and once their profits report I am sure it will jump.

The news of the Phenom launch not going so well should have probably gave Intel a boost but still Intel is at a buy rating where as AMD goes between neutral to sell and I am sure are at sell right now. That 622mill investment didn't help either.

 

[exit2dos]

The total value of AMD/ATI is getting frightenly close to what AMD paid for ATI.

 

[Evilonigiri]

Man TC, you really like rubbing it in huh? There's nothing to say but Phenom sucks and this just proves it...

 

[cruiseoveride]

i feel for AMD, without them intel will just hold us all at the neck, with whatever technology they want, and at whatever prices they want.

C'mon AMD we are rooting for you!!! Give us another AMD64 vs Pentium 4 shaker, or a Radeon 9800pro vs Geforce 2 shaker

 

[turpit]

No, it's not the market. AMD has lost 25% percent of it's value per share in the last month. If the market did that we'd call it a crash!


Dow Jones Industrial Average 1 month ago: 13,521.62
Dow Jones Industrial Average today: 12,799.04
Difference: 722.58
DJIA Loss: 5.3%

AMD One Month Ago: $14.49 per share
AMD Today: $10.83 per share
Difference: 3.66
AMD Loss: 25.2%

Intel One Month Ago: 25.95
Intel Today: 24.63
Difference: 1.32
Intel Loss: 5.0%


So Intel is actually performing better than the market, while AMD's loses are 5 times greater than what the market is experiencing.

AMD simply can't blame the market when they are 5 times worse and Intel is actually doing better than the market.

Actually, Dante has an accurate point. A Street.com article linked to your link points out:


American Technology Research analyst Doug Freedman

The selloff came on a down day for the broader markets, with the Dow Jones Industrial Average and the Nasdaq Composite both in retreat.

American Technology Research analyst Doug Freedman said chip companies carrying large loads of debt on their books are particularly suffering in the current environment.

With the credit market tightening, there are concerns about the ability of highly leveraged companies to weather a downturn in the economy, Freedman explained.

Cam noted AMD's stocks falling a day or two ago, but the Dow has been falling as well. Based on AMDs past 'lackluster' launches, and the effects (or rather lack of) of those on AMDs stock, this doesnt look like the impact of Phenom...it looks like coincidental timing. It may be that investors have had enough of the false promises and are bailing, but it would not be in keeping with the stock's previously displayed trends...which didnt indicate much reactionary selling.

 

[jjblanche]

I'm sorry turpit, and everyone else, but when a company's stock goes down 25% in one month it is SERIOUS! There is no way around it. Unless AMD does something dramatic in the next year, I can very well see them pulling out of the consumer CPU market, and maybe the CPU market all together.

 

[turpit]

Yes, it is serious...that is not the question. The question is the reason why the stock is falling is....i.e. is it phenom, or the credit/Dow?

If its the credit markets/dow...then tomorrow, the stock may very well be up 25%. If its Phenom....well then not so much.

 

[dragonsprayer]

The total value of AMD/ATI is getting frightenly close to what AMD paid for ATI.

a good american company need to buy amd before the arabs buy it for a few tankers of suv juice

 

[NMDante]

I'm sorry turpit, and everyone else, but when a company's stock goes down 25% in one month it is SERIOUS! There is no way around it. Unless AMD does something dramatic in the next year, I can very well see them pulling out of the consumer CPU market, and maybe the CPU market all together.

AMD stock has been falling for sometime now. Just cause it dropped 25% in a month does not equate K10 (Barcelona/Phenom) launch or release, as the thread title notes.

The stock market is in a flux with more than just AMD getting nailed. The housing bubble bursting, tighter credit market, and who knows what is around the corner.

I'm not saying losing 25% in a month isn't bad, it's terrible, but there is more in play than just AMD releases that is causing this downspin.

 

[Wombat2]

I said this would happen. AMD isnt financially viable at the prices they are currently asking for their products. Investors know this and have priced the stock accordingly.

 

[weskurtz81]

Yeah, I agree that this is much more than Phenom. You can go to just about any market site, Bloomberg, The Street, The WSTJ, and they all say it has to do with financing. The reason being, investors fear stock dilution.

If you look at the market in general, it sucks. Expect it to continue falling. The credit markets, real estate, all the financials.... just look at the market, and then considering AMD's debt situation, it shouldn't be to surprising.

Wombat,

If AMD continues to build debt, and dilute the stock, it will continue to fall. But, if the market stabilizes I expect it to continue to trade in the $11-$14 range.

 

[sailer]

AMD stock has been falling for sometime now. Just cause it dropped 25% in a month does not equate K10 (Barcelona/Phenom) launch or release, as the thread title notes.

The stock market is in a flux with more than just AMD getting nailed. The housing bubble bursting, tighter credit market, and who knows what is around the corner.

I'm not saying losing 25% in a month isn't bad, it's terrible, but there is more in play than just AMD releases that is causing this downspin.

I'll add my 2 cents worth. I invest in several stocks. As of today, my average loss is 25% on all the stocks I have. One has gone down 50%. I'm hanging onto it because its a good, solid company and will come back. In the meantime, it pays a good dividend.

AMD being down is just a part of the overall market. No doubt, both Barcelona and Phenom play a part of it, but the ATI division should be helping it greatly with the 3850 and 3870 cards. I think AMD should hold through under normal stock trading, but the bigger question is whether or not it will get squashed from a herd mentality that's taking the rest of the market with it. That, along with the high debt it has to service. The whole market is suffering, and AMD is part of that market.

 

[NMDante]

I'll add my 2 cents worth. I invest in several stocks. As of today, my average loss is 25% on all the stocks I have. One has gone down 50%. I'm hanging onto it because its a good, solid company and will come back. In the meantime, it pays a good dividend.

AMD being down is just a part of the overall market. No doubt, both Barcelona and Phenom play a part of it, but the ATI division should be helping it greatly with the 3850 and 3870 cards. I think AMD should hold through under normal stock trading, but the bigger question is whether or not it will get squashed from a herd mentality that's taking the rest of the market with it. That, along with the high debt it has to service. The whole market is suffering, and AMD is part of that market.

Unless their ASPs for the 38x0 cards are high, I doubt that the GPU sector of ATI/AMD can help much vs. the losses that are happening in the CPU side of things. It might slow the bleeding, but the delay of bringing out the 2GHz Barcelona and even keeping the lower ones in quantity, along with the recall of the highest Phenom, a day before launch, won't help things.

Even if the GPU side manages to get, let's say, $200M in sales this quarter, how much of that is overall profit? $50M? $75? $100M? Add that to the CPU side. Then you have diluted stock due to the sale of 9% to Abu Dahbi. It just doesn't look too good a quarter, and end of year for AMD, imo. Nevermind what the market is doing, either.

 

[ro3dog]

There cpu suck ,there gpu suck,there chipset sucks?depends on who you talk to .regardless of what the stocks is doing right now AMD is sell dam near everything they make.Investers are always scared expecially the short termed ones.Me I'm long term sitting with my feet up.End of this quarter will shed some good light on AMD.All there stuff suck but fools like are buying there hardware faster than they can make them

 

[sailer]

NMDante, I agree that the end quarter doesn't look good at all for AMD. The best that the video card sales are doing is to slow the bleeding of the cpu side. There is also a small income from motherboard chipsets, but I'm not sure how great that factor is. On those ends, the ATI aquisition may be the best thing that AMD has done for the past year and a half. I expect that it will take another year to turn things around for AMD, and that's if they start turning out some good chips.

I think that Barcelona will be a greater factor in their turnaround then Phenom is, but they have to start supplying both to the marketplace. Also, If they can fix the speed problem with Balcelona, that will fix the speed problem with Phenom at the same time. Will any of this happen in time to help? I can't say.

 

[JerryC]

I'll add my 2 cents worth. I invest in several stocks. As of today, my average loss is 25% on all the stocks I have. One has gone down 50%. I'm hanging onto it because its a good, solid company and will come back. In the meantime, it pays a good dividend.

AMD being down is just a part of the overall market. No doubt, both Barcelona and Phenom play a part of it, but the ATI division should be helping it greatly with the 3850 and 3870 cards. I think AMD should hold through under normal stock trading, but the bigger question is whether or not it will get squashed from a herd mentality that's taking the rest of the market with it. That, along with the high debt it has to service. The whole market is suffering, and AMD is part of that market.

If your losses are equal to 25%, then perhaps you should pay more attention to your investments. That aside, a very good friend of mine once told me that the market is only down until the next upswing. Then its not down anymore.

 

[wolverinero79]

This is an excellent graph right now...

http://finance.google.com/finance?q=intc%2C+amd&hl=en

The start of the graph is Phenom's launch. Yes, the stocks correlate in terms of overall shape, but that's pretty drastic in terms of how far AMD has dropped in regards to INTC (that is, if you're looking at the graph on 11/21/2007...after today I guess it'll move). They may bounce back soon, but that's prreeeetty low.

The year to date (YTD) graph is even more telling. Intel up ~20%, AMD down more than 40%.

 

[xrodney]

The total value of AMD/ATI is getting frightenly close to what AMD paid for ATI.

I am not sure what you mean, but total assets own by AMD are much greater. Just look at semiconductor plants, they are a quite expensive assets.

 

[kainokai]

I believe....that Intel should invest in AMD, so it can at least look as though AMD has money and something to do ^^. and oh yea google should do some investing in yahoo, ask.com, and microsoft, for the same reason, lol


(^.^)V - MORE COMPETITION (and Happy Thanksgiving!)

 

[pogsnet]

i feel for AMD, without them intel will just hold us all at the neck, with whatever technology they want, and at whatever prices they want.

C'mon AMD we are rooting for you!!! Give us another AMD64 vs Pentium 4 shaker, or a Radeon 9800pro vs Geforce 2 shaker

[😛ogsnet]

But Stock market does not represent companies standing at all. Maybe it drops due to the fact of the news that the AMD CEO will resign so fears like if the new CEO will plum down the company in to shreds.

United Arab Emirates company takes 8% stake in AMD last nov. 16, 2007
http://techreport.com/discussions.x/13620
This is a big new capital for research and development. So the company itself is fine, it is only on the investor side has the problem, some have big fears how Phenoms will capture the lost market share, and gain the other or simple go down further to abyss.