[News] AMD Stock Nosedives to Biggest Loss in 12 Years

[StyM]

https://www.techpowerup.com/232974/a...ss-in-12-years

In the wake of its Q1-2017 financial results, AMD stock on NASDAQ went belly-up, posting its biggest single-day crash in 12 years. At the time of writing, the stock fell 24.22 percent, down to $10.30 per share, which is rivaled only by the 26.2 percent plummet of 11th Jan, 2005. According to Analyst Christopher Rolland at Susquehanna Financial, only a "near-perfect" Q1 results by AMD could have prevented this crash from happening. In a letter to his clients, Rolland writes that "AMD's new products are beginning to accelerate growth, but perhaps without all the gross margin benefits [they] had hoped for."

Susquehanna Financial is keeping its rating of AMD neutral, hoping that the upheaval will settle down at $12 (a recovery from its current $10.3). UBS analyst Stephen Chin is a little more grim, after posting a sell rating, with a price target of $9 (a further 13 percent selloff). "We keep our sell rating on the stock as we see limited EPS growth near term to support its high multiple as it need to invest heavily to keep pace with Intel and NVIDIA," Chin wrote. "We also estimate limited operating margin expansion in the near term," he added. To dig itself out of this, AMD needs to successfully sell a quantitative amount of products with high margins, and post good results over the next quarters.

[iddqd]

It was over-inflated, so it was bound to crash sooner or later.

[StAndrew]

Ouch.

[AliG]

Sold at $14.50 LOL

[StAndrew]

Sold at $14.50 LOL

I guess you were right. I would have gambled and kept it to see how Ryzen does... I still think stocks will start going up overtime; how soon is Vega depending.

[AliG]

I guess you were right. I would have gambled and kept it to see how Ryzen does... I still think stocks will start going up overtime; how soon is Vega depending.

Nah the hype was getting way too strong. I had a hunch it would underperform expectations at some point, and was frankly surprised it rebounded so quickly after the Ryzen reviews pointed out the poor AVX and overclocking. I do think you can buy in cheap shortly though. Odds are it'll bounce back next quarter (I just happen to think there's better investments out there).