Friday, January 3rd 2020
AMD Stock Broke All-Time Record for the Company, Peaked at $49.10 per Share
AMD veterans yesterday must've sneakily left their respective offices yesterday for a well-deserved rest and a glass of champagne - and if they didn't, they deserved it. The company yesterday broke their previous all-time stock pricing record achieved way back in June 2000, at $47.50 per share, when it traded at $49.10 per share yesterday.
It's been a long time coming for AMD, and irrespective of any brand loyalty, it certainly pays, as a consumer and as an enthusiast, to see a company that nearly went bankrupt in 2016 - who had to sell and then lease back their own headquarters for a quick cash infusion, spin-off its manufacturing division in a change of strategy that couldn't have been easy on morale - achieve such a colossal feat. Even more impressive this is should you even be considering the blue behemoth the company actually has to contend with - a $260.35B Intel who, by both happenstance and poor CPU execution vision, is being fired upon on all markets by comparative David AMD, today valued at $51.07B. Here's hoping all AMD employees got their well-deserved party and standing ovation from each other. None of them - not even Lisa Su - achieved this alone.
Sources:
Market Cap, via Tom's Hardware
It's been a long time coming for AMD, and irrespective of any brand loyalty, it certainly pays, as a consumer and as an enthusiast, to see a company that nearly went bankrupt in 2016 - who had to sell and then lease back their own headquarters for a quick cash infusion, spin-off its manufacturing division in a change of strategy that couldn't have been easy on morale - achieve such a colossal feat. Even more impressive this is should you even be considering the blue behemoth the company actually has to contend with - a $260.35B Intel who, by both happenstance and poor CPU execution vision, is being fired upon on all markets by comparative David AMD, today valued at $51.07B. Here's hoping all AMD employees got their well-deserved party and standing ovation from each other. None of them - not even Lisa Su - achieved this alone.
85 Comments on AMD Stock Broke All-Time Record for the Company, Peaked at $49.10 per Share
Financials are revenue, profit, costs, cashflow, debt etc - things that appear in the financial statement.
Stock price is a figure that describes market expectations. So we shouldn't really praise the fact that stock costs as much as when it peaked during dotcom bubble (and just like then - flying high over fundamentals).
they don't have to invest in fabs and don't get the earnings from fabs either.
so their margins is what you'd have to compare.
A part of a company that doesn't sell outside doesn't contribute to revenue (and profits). It doesn't matter if you spend millions on an external contractor (like TSMC) or on a internal team/production facility.
If they did lend the fabs, then you're right: totals won't say if the CPU business got better.
But we can still compare company vs company (as a whole).
AMD deliberately changed their structure, so it should have led to higher margins. And have it?
They have been losing money for most of their history, but they had periods of profitability as well. What I meant earlier was: AMD today still hasn't matched 2011 (in terms of profitability) and 2006 (in both profitability and debt). And that's despite all the goodness and saving 7nm gives them (or at least some people think it does).
Currently AMD is trying to lower their debt which consumes some of the earnings. But even with that in mind their margins (both gross and net) are very, very low. It's not a healthy business.
They need to raise their prices - something they're deferring to gain market share. IMO it's happening much slower than they hoped.
I don't pay close attention to stock markets nor am I well up on all this stuff as it has zero interest to me.
Next time I'll just say "looks like AMD is starting to do better" :p
If you look at actually net profit amounts from Intel, AMD, and Nvidia, AMD is not only last... it's abysmal. They win our hearts cause they cut costs, but that also means they make less money. So it's a double edged sword.
AMD neither earns nor loses anything from the fact that their stock costs $50 instead of $5.
In normal situation stock price is an indicator of how well a company is doing, true. But this is not the case of AMD.
To be honest, I'm not entirely sure why it is like that. And also, why this stock is so volatile. We see huge reactions to things like showing new products or waves of good review. This should not happen normally.
Maybe millions of PC enthusiasts are creating a bubble. Maybe large investors are speculating. No idea.