Wednesday, May 3rd 2017
AMD Stock Nosedives to Biggest Loss 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.
Source:
Marketwatch
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.
39 Comments on AMD Stock Nosedives to Biggest Loss in 12 Years
So until PE ratios come back down to sustainable numbers overall, we're going to see more and more stocks like AMD get slammed extra hard when they disappoint on numbers.
The word Nosedive always reminds me of this ^
And that was after posting record revenue, hey ho markets and all that.