AMD's Stock Plummets, Worst Single-Day Drop In More Than A Decade

[fixxxer113]

Looks like AMD's stock has Ryzen a bit too much... DA BUM TSS

 

[yaseen_157]

Something tells me, this is an artificial crash so the fat cats will get people to sell their stock - so they can buy them and profit as soon as AMD releases Vega... Anyone here seen The Big Short?

 

[yaseen_157]

Anyone here see The Big Short? Remember how the fat cats at the bank tried to artificially create demand for a product A, to force people to withdraw stocks from another investment B, because the fat cats wanted those stocks from B and needed people who owned them to sell?

Those are the vibes I'm getting here.

 

[Nintendork]

Pretty simple, people who bough stocks on the cheap are selling it now, impatient people but 5-6x profits if you knew when to buy.

 

[RCFProd]

Remember when everyone was saying "Intel is doomed"? Pepperidge farm remembers...

I always burst into laughing when I read stupid things like this, especially because that's almost as irrelevant as it can be to the subject.

 

[daglesj]

Always buy stocks for the long haul, never the short term. You will rarely ever lose on them then.

 

[Pompompaihn]

I bought into AMD last summer....I sold last Friday. This drop was telegraphed a mile away if you were paying attention. AMD is -FINE- but the stock was elevated on this idea that the mid-quarter limited release of a new CPU line was somehow going to create MASSIVE profits, which is simply not how the system works. If you listen to the guidance, basically they're saying it's going to be late 2017, early 2018 before they start really churning in money on the Ryzen chips. Which makes perfect sense, it takes OEMs a little while to start tooling up for an entirely new chipset, and waiting for the BIOS kinks and such to get worked out. If you bought the stock when it was over 11 or so I feel for ya, because once it got there it was in bubble territory. But, just hold, it'll be back by year end. I debated re-entering but frankly I need the $$ now more than I need the growth potential. Surgeries make TERRIBLE investments lol.

 

[ByteJuggler]

"should be going up with the new chip out" no -- it's already gone up in anticipation of the new chips out. In order to go up further AMD would have had to have surprised to the upside. It did not. Therefore, those who bought early in anticipation had the signal that it's time (for now) to realise profits. Markets are anticipatory in nature. That is it buys the rumour (ahead of time) and sells the news (confirmation.) That's how it works. Thinking the stock must go up *now* after the rise already seen, *because* of the chips is naive.

 

[neieus]

I believe what has happen is that Ryzen was pumped and everyone jumped on the stock wagon and naturally the stock price increased. There is no denying that the CPU's are great by comparison so the question becomes why are they selling their stock? Simple the answer is that they are traders and traders are out to make money. They probably figured they have made all or the majority of what they want to make and decided to sell off their shares as they may believe the stock price has stabilized or will not continue to rise. The same situation applies if you consider the stock was over valued so in other words... this really isn't that big of a deal and is pretty much normal. You buy low and sale high once you feel you can't or won't make anymore and move on to the next big thing.

 

[The Paladin]

I should of bough when 2$ and sold at highest point .... damn me and my railroad investments....

 

[bloodroses]

Similar to how penny stocks work, AMD's stocks got artificially inflated due to all the press/hype surrounding Ryzen. Now that it's not the big news, the stocks are returning to normal. The only difference is that AMD is much larger than a penny stock company. Expect to see another inflation when Vega rolls out, just not as large since Ryzen was a much bigger deal for AMD.

If you watch the movie The Wolf of Wall Street, you'll see similar happened with that shoe company they over hyped to gain massive stock profit. The only difference is that was done illegally and AMDs was done accidentally by the media.

 

[redgarl]

It's another investing firm devaluation because Q1 was not representing the stock value so they sold their share which is retarted because Ryzen 7 was only on sale for 20+ days during that quarter.

It happened last month when Goldman Sachs did the same thing. What is funny is the stock plummet to 12$ and came back 3 weeks later at 14$... until this morning... guess what, it's going to be back again at 14$ in a month because bankers are not technologists.

Basically the only thing AMD was selling were RX 480. Napples, Vega, APU and Ryzen 3 are not even released.

If I was having some money left, I would buy 2000$ of AMD stock right now.

 

[mdbrotha03]

Sell your CPUs for less than what you could get for them and this will happen. Low prices great for consumers, bad for shareholders

 

[mdbrotha03]

Make no mistake, AMD is making money on Ryzen but they could sell there CPUs for 30 percent more and they would still sell well

 

[redgarl]

"Sell your CPUs for less than what you could get for them and this will happen. Low prices great for consumers, bad for shareholders"

Wow... the Ryzen 7 was release barely 23 days before the end of Q1 2017. You are having no clue of what you are talking about. It's not AMD selling CPU too cheap, it's Intel milking people.

 

[MASOUTH]

Reading tech geeks comment on stock prices but most of them seem to have little to zero idea of how stock markets work.

Reading them goes from LMAO to "wtf is wrong with these people? now my head hurts" after about 25 comments.

 

[Jeremy_102]

Just a correction from the February hype boom. Leads to a better value to enter the stock. Also, the traders are not rabid gamers, they are intel powered bots that smell blood.

 

[Jeremy_102]

Just a correction from the February hype boom. Leads to a better value to enter the stock. Also, the traders are not rabid gamers, they are intel powered bots that smell blood.

 

[aldaia]

"Sell your CPUs for less than what you could get for them and this will happen. Low prices great for consumers, bad for shareholders"

Wow... the Ryzen 7 was release barely 23 days before the end of Q1 2017. You are having no clue of what you are talking about. It's not AMD selling CPU too cheap, it's Intel milking people.

Sorry, I voted you down accidentally

 

[Kanono]

Can someone plz help me buy those.. i have no idea where and how to buy stocks.. but i want these!

 

[Kanono]

Can someone plz help me buy those? I have no idea where and how to buy these but i want them!

 

[blppt]

"Make no mistake, AMD is making money on Ryzen but they could sell there CPUs for 30 percent more and they would still sell well "

I think that since the Bulldozer line and AMD forced to stick with 28nm process CPUs so long, that the closer you get in price to the equivalent Intel CPU, most people (especially those tasked with building corporate systems with other people's money) are going to play it safe and stick with Intel. AMD probably had experts analyze the ideal price point for their new revolutionary architecture, and then, if they can keep up with Intel watt/performance (or surpass slightly) for the future---THEN they might be able to afford to push their prices closer to what Intel is (over)charging for their CPUs.

However wrong it may be, AMDs consumer-level CPUs have the "cheap option" stigma to get over based on the overall disappointment that was BD/SR/PD/etc. Generally when John Q. Public goes into the local best buy, the cheaper laptops/computers there tend to be more AMD than Intel, and the high end is Intel. Ryzen has as good a chance as any to change that perception---although even when AMD was beating the pants off of Intel in value/performance (K7, early K8 and their variants vs P4) , it doesnt help if you cant keep that going for your future products.

 

[Brian_R170]

I remember on Tom's a while back that was about AMD's stock price and the author apologized because he realized that a tech site should focus on tech and not investing... then he proceeded to give an excuse to talk about it anyway. Apparently, an excuse is no longer necessary.

 

[kieranbunny]

noticed sumpin lately...follow stocks peripherally and it would appear that since ryzen appeared some financial sites seem to just diss on amd..and me do mean right after ryzen came out. not namin names or bein conspiracy minded but certain chip makers have been caught "futzin" with stuff wonder if it's the same for finacial things....

 

[mdbrotha03]

"Sell your CPUs for less than what you could get for them and this will happen. Low prices great for consumers, bad for shareholders"

Wow... the Ryzen 7 was release barely 23 days before the end of Q1 2017. You are having no clue of what you are talking about. It's not AMD selling CPU too cheap, it's Intel milking people.

I've owned stock in AMD before.
Can you say the same?

Intel is charging the most a user is willing to spend on a CPU.
Their profits every quarter is shows this. You call it milking.
The market calls it maximizing profits.

Outside of any market speculation and other external factors

Very simplistic:
1. The Market knows how much performance the Ryzen is capable of.
2. The Market knows how much more Intel is able to charge for similar or even less performance.
3. Shareholders sell their stock(Why sell for $500(bad business) what you could sell for $680(smart)). More stock is available in the market. Stock price goes down.

AMD could have charged 500 for 1700x and still beat Intel price for performance outside of 1080p gaming.
Everyone would still consider $680 1800x cheap compared to a $1000 6900k. A 30% increase in cost.