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

Page 2 - Seeking answers? Join the Tom's Hardware community: where nearly two million members share solutions and discuss the latest tech.
Toggle sidebar Toggle sidebar
I don't know, it looks like it's been dropping since mid October though. I wouldn't say Phenom is the cause, but it doesn't look like it's helping any. Then again, I just like looking at the pretty graphs. 😉
 
Based on the graph even Intel is dropping though slightly but still since this is a very big company. Maybe the stockmarket really has the problem and all other companies. But well its gaining slightly now. This graph is not enough to say that they will go down in the near future.

But in any case that there will be no more AMD then PC technology slows down. We expect one major upgrade every ten years. C2QUAD until 2010. huh!
 


Do explain why please.. A "good American" company?? WTF is this cra.p? hmmm like the hoards of American companies that are helping propagate negative globalisation issues on a worldwide scale??? As for the comparison with companies from other countries - I'm afraid I don't follow your point.. Do explain - or was it just verbal diarrhea? Nor do I agree (and admittedly) with American politics in general..
Ryan
 
If I had money, I'd invest in AMD right now. Unfortunately, I'm skint 🙁 😀


They have a product portfolio that will only get stronger.

They'll speed ramp Barce/Phenom Q1 (or worse H1) next year.

They'll have the spider platform for OEM sales.

They will continue to grap OEM sales with the Radeons (the 2400 was a big hit).

If they transition to 45nm H2 08, they'll be able to bring more cache into Barcelona, that should help its speed. [and manuf cost]

Optimism for Bulldozer and Bobcat will raise the share price going forward into 2009.
 


After 40 years of investing, I've learned the market pretty well. I do pay attention to my investments. Its not just my investments that are down, its the market as a whole. These things happen from time to time and I've seen quite a few of them. One of the things I've done is called "contrarion investing", that is, buying as the market drops. So in the case of the one stock which I mentioned that has dropped 50% in value, I bought more of it. When the market does go back up, as it eventually will, I will make back everything I lost on the original investment and far more on the buys made while it was down. In the meantime, I'm getting paid good dividends, so all is not lost be any means.

And your friend is right. All that's needed is patience to hold on through the downturn and not panic and sell off.
 



Why does it seem like you get some kind of cathartic joy from all of this? What did AMD do to you anyway? It's one thing to say, Phenom doesn't seem to be faster, why? But it's another to act like you're whole life has now ended horribly and you have to pay them back.


Normally when the stock market reacts like this, you see analysts cutting ratings before hand. I'm not sure that happened. Have you followed the selling patterns for the last few weeks? Sell-offs usually precede that kind of drop also. But then, look at Microsoft. They lost so much market cap, they could have bought Intel 2X, but they still make $1B a month.

AMD should get really close to $2B in revenues this quarter and with the shrinking losses, it's possible this will be their break-even quarter. Next quarter will mark the intro of their new cell-phone chip. I think they should stop here with Phenom and go to Athlon 6000, which would definitely help margins as those dual cores are a lot smaller.

Unfortunately, the industry is in full on perf crown mode, so even the improvements with Phenom, if it's not faster, YOU SUCK! I'm sorry I realize that the cash crunch earlier in the year probably affected the release because Barcelona has cut HT links while Phenom doesn't so chips that don't become Barcelona can't become Phenom. That I blame on OEMs because it seems like no one has had major problems with Phenom in AM2 boards.

If only they had such guts when it came to Intel. After all, without the rest of the components, CPUs, chipsets and mobos are useless. Anyway that's my useless rant for today. Happy Thanksgiving. I'm out.
 


Old news.....the whole stock market is hurting...........

Stocks slumped Wednesday, with the Dow closing at a 7-month low, as worries about the credit and mortgage market and higher oil prices hit investors hard ahead of what for many will be a long holiday weekend.

Treasury prices rallied, the dollar fell, oil prices edged lower and gold prices rose.

The Dow Jones industrial average (Charts) lost 211 points or 1.6 percent. That set the Dow at its lowest point since April 17, when it ended the session at 12,773.04.

The S&P 500 (Charts) index lost 1.6 percent and the Nasdaq composite (Charts) lost 1.3 percent.

The stock selloff was very broad, with homebuilders, banks, mortgage lenders and technology shares leading the decline.

Even Intell stocks were down..........



 



At $10.83/share, their market cap is $6.54B - just $1B more than what ATI cost alone.
http://www.nyse.com/about/listed/lcddata.html?ticker=AMD

If their stock falls to ~$9.20/share, the cap will be at what they paid for ATI only a year ago.

For the record, I'm not taking a fanboi stance, nor forecasting doom & gloom - it's just a little disturbing to see this.
 



Lets hope you do not intend making money in the market, although maybe it would be a good solid career move for you.

AMD stock is down 12% on the 5 day which includes the 19th (release date of the Phenom).
Intel is down 5% on the 5day, a net difference of 7%.

The 3Month shows Intel and AMD pretty much in lockstep through the entire period. mirroring gains and losses until the last week.

AMD are down 12% on the 3 month, Intel up 3% on the 3Month. Trading volumes are higher, but nothing ridiculous on either of them.

Thanks for the remarkable market analysis, it comes second only to the standard of technical analysis you provide.





 


If AMD drops into the 9's, I might toss some gambling money into it. Until then I'll spend my money on something more interesting.
 


Once again. You cannot blame a 5% market decline for a 25% AMD decline.


 


I'd wait until 7 🙂


I bought GOOG at 180 and sold at 390, and I'm still pissed I sold then!
 


AMD won't be going out of business any time soon; it has plenty enough useful technology, licenses and patents that if it did go bankrupt someone would buy up the remains. All those chip engineers would be pretty valuable too.

So I don't think we have to worry about an Intel-only world any time soon.
 




Yes but the market was on its way down a while ago. The chip just came out this week so you can't blame it all on the release of the chip.....their stocks have been falling for a while.
 



Not Phenom, K10, which includes Barcelona on the server side.

You still can't say "IT'S THE STOCK MARKET". If AMD declined with the stock market it would have gone down 5%, just like Intel did. But no, AMD stock has tanked 25% in the last month. I won't pretend like the entire decline is a response to K10, but I would suspect that a good part of it is, especially the last week.

AMD is going to be in trouble, they keep desperately searching for cash because they're not making any.
 
People tend to forget that the stock market is, in part, there to reflect the money a company is worth. Given AMDs debt and lack of income i would say those 25% (actually more like 26%) are an adjustment to the real company value. A flopped product won't affect a company like AMD this severe. Especially not a product like Phenom that is of almost no importance to them. No, it's simply the fact that AMD is covered in debt and the lack of income. They kept the value artificially high by showing glorious roadmaps and future plans - but that works only for so long.
And yes, it is the stockmarket. Intel only went down 5% because they are pretty solid. They don't have any debt and they have a steady income. They fired plenty of people and streamlined their company to be more efficient. Still they went down. Imagine if there was a general decline in the technology market. Would you invest into a company like AMD that deep into the red?

On the other hand K10 is guilty of causing famine, the pest, unhappiness and bad luck in general, so please go on and entertain me with those doomsday scenarios and conspiracy theories.
 



I sure hope not. That thought is frightening. AMD taken over by a company not comprised of douchebags would put a serious hurt on the blue team in a hurry.
 


Actually, the market is to blame, at least in part. Look at Citigroup, the biggest bank in the world. One month ago at $42, yesterday at $30, 5 year-low. AMD certainly disappointed, but its stock price is also hit by factors that aren't their fault.
http://finance.yahoo.com/q/bc?s=C&t=5y&l=on&z=m&q=l&c=
 
You must log in or register to reply here.

TRENDING THREADS

Latest posts

Moderators online

Share this page

COMPANY
RESOURCES
FOLLOW
Top Bottom