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

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November 21, 2007 7:44:54 PM

AMD One Month Ago: $14.49 per share
AMD Today: $10.83 per share

AMD shares were worth 33% more one month ago than they are today.

http://finance.google.com/finance?q=AMD
http://finance.yahoo.com/q?s=aMD


Don't blame this on the stock market. If the stock market lost 25% of its value in a month it would be a disaster. That would be like the Dow Jones going from 13,000 to 9,750. AMD losing 25% value in one month is just par for the course they're on.

More about : amd stock plummets response k10 release investors scared

November 21, 2007 7:57:50 PM

It's the entire market, not just AMD.
Yes, AMD is getting smacked more, but its not because of Phenom's launch or its results.
Look at all the other semiconductor stocks - they got slapped around, too.
The only reason why AMD is hurting worse, is the debt it's carrying around right now. Add to that the dilution of its stock due to the last big sale it did.

The market sucks butt right now, and everyone is getting b*tch slapped for it. Not just AMD.
Related resources
November 21, 2007 8:52:07 PM

NMDante said:
It's the entire market, not just AMD.


No, it's not the market. AMD has lost 25% percent of it's value per share in the last month. If the market did that we'd call it a crash!


Dow Jones Industrial Average One month ago: 13,521.62
Dow Jones Industrial Average today: 12,799.04
Difference: 722.58
DJIA Loss: 5.3%

Intel One Month Ago: 25.95
Intel Today: 24.63
Difference: 1.32
Intel Loss: 5.0%

AMD One Month Ago: $14.49 per share
AMD Today: $10.83 per share
Difference: 3.66
AMD Loss: 25.2%

So Intel is actually performing better than the market, while AMD's loses are 5 times greater than what the market is experiencing.

AMD simply can't blame the market when they are 5 times worse and Intel is actually doing better than the market.
a c 211 à CPUs
a b À AMD
November 21, 2007 8:59:41 PM

Intel is fluxing between 25-27 dollars every week(I check the stock market at work every day). Now since Intel has been selling so well most of Q4 and once their profits report I am sure it will jump.

The news of the Phenom launch not going so well should have probably gave Intel a boost but still Intel is at a buy rating where as AMD goes between neutral to sell and I am sure are at sell right now. That 622mill investment didn't help either.
November 21, 2007 9:06:22 PM

The total value of AMD/ATI is getting frightenly close to what AMD paid for ATI.
November 21, 2007 9:07:13 PM

Man TC, you really like rubbing it in huh? There's nothing to say but Phenom sucks and this just proves it...
November 21, 2007 9:13:50 PM

i feel for AMD, without them intel will just hold us all at the neck, with whatever technology they want, and at whatever prices they want.

C'mon AMD we are rooting for you!!! Give us another AMD64 vs Pentium 4 shaker, or a Radeon 9800pro vs Geforce 2 shaker
November 21, 2007 9:15:44 PM

TechnologyCoordinator said:
No, it's not the market. AMD has lost 25% percent of it's value per share in the last month. If the market did that we'd call it a crash!


Dow Jones Industrial Average 1 month ago: 13,521.62
Dow Jones Industrial Average today: 12,799.04
Difference: 722.58
DJIA Loss: 5.3%

AMD One Month Ago: $14.49 per share
AMD Today: $10.83 per share
Difference: 3.66
AMD Loss: 25.2%

Intel One Month Ago: 25.95
Intel Today: 24.63
Difference: 1.32
Intel Loss: 5.0%


So Intel is actually performing better than the market, while AMD's loses are 5 times greater than what the market is experiencing.

AMD simply can't blame the market when they are 5 times worse and Intel is actually doing better than the market.


Actually, Dante has an accurate point. A Street.com article linked to your link points out:


American Technology Research analyst Doug Freedman
Quote:

The selloff came on a down day for the broader markets, with the Dow Jones Industrial Average and the Nasdaq Composite both in retreat.

American Technology Research analyst Doug Freedman said chip companies carrying large loads of debt on their books are particularly suffering in the current environment.

With the credit market tightening, there are concerns about the ability of highly leveraged companies to weather a downturn in the economy, Freedman explained.


Cam noted AMD's stocks falling a day or two ago, but the Dow has been falling as well. Based on AMDs past 'lackluster' launches, and the effects (or rather lack of) of those on AMDs stock, this doesnt look like the impact of Phenom...it looks like coincidental timing. It may be that investors have had enough of the false promises and are bailing, but it would not be in keeping with the stock's previously displayed trends...which didnt indicate much reactionary selling.
November 21, 2007 9:25:25 PM

I'm sorry turpit, and everyone else, but when a company's stock goes down 25% in one month it is SERIOUS! There is no way around it. Unless AMD does something dramatic in the next year, I can very well see them pulling out of the consumer CPU market, and maybe the CPU market all together.
November 21, 2007 9:29:06 PM

Yes, it is serious...that is not the question. The question is the reason why the stock is falling is....i.e. is it phenom, or the credit/Dow?

If its the credit markets/dow...then tomorrow, the stock may very well be up 25%. If its Phenom....well then not so much.
November 21, 2007 9:33:20 PM

exit2dos said:
The total value of AMD/ATI is getting frightenly close to what AMD paid for ATI.



a good american company need to buy amd before the arabs buy it for a few tankers of suv juice
November 21, 2007 10:06:41 PM

jjblanche said:
I'm sorry turpit, and everyone else, but when a company's stock goes down 25% in one month it is SERIOUS! There is no way around it. Unless AMD does something dramatic in the next year, I can very well see them pulling out of the consumer CPU market, and maybe the CPU market all together.


AMD stock has been falling for sometime now. Just cause it dropped 25% in a month does not equate K10 (Barcelona/Phenom) launch or release, as the thread title notes.

The stock market is in a flux with more than just AMD getting nailed. The housing bubble bursting, tighter credit market, and who knows what is around the corner.

I'm not saying losing 25% in a month isn't bad, it's terrible, but there is more in play than just AMD releases that is causing this downspin.
November 21, 2007 10:16:49 PM

I said this would happen. AMD isnt financially viable at the prices they are currently asking for their products. Investors know this and have priced the stock accordingly.
November 21, 2007 10:31:20 PM

Yeah, I agree that this is much more than Phenom. You can go to just about any market site, Bloomberg, The Street, The WSTJ, and they all say it has to do with financing. The reason being, investors fear stock dilution.

If you look at the market in general, it sucks. Expect it to continue falling. The credit markets, real estate, all the financials.... just look at the market, and then considering AMD's debt situation, it shouldn't be to surprising.

Wombat,

If AMD continues to build debt, and dilute the stock, it will continue to fall. But, if the market stabilizes I expect it to continue to trade in the $11-$14 range.
November 21, 2007 10:32:36 PM

NMDante said:
AMD stock has been falling for sometime now. Just cause it dropped 25% in a month does not equate K10 (Barcelona/Phenom) launch or release, as the thread title notes.

The stock market is in a flux with more than just AMD getting nailed. The housing bubble bursting, tighter credit market, and who knows what is around the corner.

I'm not saying losing 25% in a month isn't bad, it's terrible, but there is more in play than just AMD releases that is causing this downspin.



I'll add my 2 cents worth. I invest in several stocks. As of today, my average loss is 25% on all the stocks I have. One has gone down 50%. I'm hanging onto it because its a good, solid company and will come back. In the meantime, it pays a good dividend.

AMD being down is just a part of the overall market. No doubt, both Barcelona and Phenom play a part of it, but the ATI division should be helping it greatly with the 3850 and 3870 cards. I think AMD should hold through under normal stock trading, but the bigger question is whether or not it will get squashed from a herd mentality that's taking the rest of the market with it. That, along with the high debt it has to service. The whole market is suffering, and AMD is part of that market.
November 21, 2007 11:06:19 PM

sailer said:
I'll add my 2 cents worth. I invest in several stocks. As of today, my average loss is 25% on all the stocks I have. One has gone down 50%. I'm hanging onto it because its a good, solid company and will come back. In the meantime, it pays a good dividend.

AMD being down is just a part of the overall market. No doubt, both Barcelona and Phenom play a part of it, but the ATI division should be helping it greatly with the 3850 and 3870 cards. I think AMD should hold through under normal stock trading, but the bigger question is whether or not it will get squashed from a herd mentality that's taking the rest of the market with it. That, along with the high debt it has to service. The whole market is suffering, and AMD is part of that market.


Unless their ASPs for the 38x0 cards are high, I doubt that the GPU sector of ATI/AMD can help much vs. the losses that are happening in the CPU side of things. It might slow the bleeding, but the delay of bringing out the 2GHz Barcelona and even keeping the lower ones in quantity, along with the recall of the highest Phenom, a day before launch, won't help things.

Even if the GPU side manages to get, let's say, $200M in sales this quarter, how much of that is overall profit? $50M? $75? $100M? Add that to the CPU side. Then you have diluted stock due to the sale of 9% to Abu Dahbi. It just doesn't look too good a quarter, and end of year for AMD, imo. Nevermind what the market is doing, either.

November 22, 2007 1:01:32 AM

There cpu suck ,there gpu suck,there chipset sucks?depends on who you talk to .regardless of what the stocks is doing right now AMD is sell dam near everything they make.Investers are always scared expecially the short termed ones.Me I'm long term sitting with my feet up.End of this quarter will shed some good light on AMD.All there stuff suck but fools like are buying there hardware faster than they can make them
November 22, 2007 3:59:18 AM

NMDante, I agree that the end quarter doesn't look good at all for AMD. The best that the video card sales are doing is to slow the bleeding of the cpu side. There is also a small income from motherboard chipsets, but I'm not sure how great that factor is. On those ends, the ATI aquisition may be the best thing that AMD has done for the past year and a half. I expect that it will take another year to turn things around for AMD, and that's if they start turning out some good chips.

I think that Barcelona will be a greater factor in their turnaround then Phenom is, but they have to start supplying both to the marketplace. Also, If they can fix the speed problem with Balcelona, that will fix the speed problem with Phenom at the same time. Will any of this happen in time to help? I can't say.
November 22, 2007 4:50:41 AM

sailer said:
I'll add my 2 cents worth. I invest in several stocks. As of today, my average loss is 25% on all the stocks I have. One has gone down 50%. I'm hanging onto it because its a good, solid company and will come back. In the meantime, it pays a good dividend.

AMD being down is just a part of the overall market. No doubt, both Barcelona and Phenom play a part of it, but the ATI division should be helping it greatly with the 3850 and 3870 cards. I think AMD should hold through under normal stock trading, but the bigger question is whether or not it will get squashed from a herd mentality that's taking the rest of the market with it. That, along with the high debt it has to service. The whole market is suffering, and AMD is part of that market.



If your losses are equal to 25%, then perhaps you should pay more attention to your investments. That aside, a very good friend of mine once told me that the market is only down until the next upswing. Then its not down anymore.
November 22, 2007 5:11:52 AM

This is an excellent graph right now...

http://finance.google.com/finance?q=intc%2C+amd&hl=en

The start of the graph is Phenom's launch. Yes, the stocks correlate in terms of overall shape, but that's pretty drastic in terms of how far AMD has dropped in regards to INTC (that is, if you're looking at the graph on 11/21/2007...after today I guess it'll move). They may bounce back soon, but that's prreeeetty low.

The year to date (YTD) graph is even more telling. Intel up ~20%, AMD down more than 40%.
November 22, 2007 5:44:57 AM

exit2dos said:
The total value of AMD/ATI is getting frightenly close to what AMD paid for ATI.

I am not sure what you mean, but total assets own by AMD are much greater. Just look at semiconductor plants, they are a quite expensive assets.
November 22, 2007 7:00:14 AM

I believe....that Intel should invest in AMD, so it can at least look as though AMD has money and something to do ^^. and oh yea google should do some investing in yahoo, ask.com, and microsoft, for the same reason, lol


(^.^)V - MORE COMPETITION (and Happy Thanksgiving!)
November 22, 2007 7:12:11 AM

cruiseoveride said:
i feel for AMD, without them intel will just hold us all at the neck, with whatever technology they want, and at whatever prices they want.

C'mon AMD we are rooting for you!!! Give us another AMD64 vs Pentium 4 shaker, or a Radeon 9800pro vs Geforce 2 shaker


[:pogsnet]

But Stock market does not represent companies standing at all. Maybe it drops due to the fact of the news that the AMD CEO will resign so fears like if the new CEO will plum down the company in to shreds.

United Arab Emirates company takes 8% stake in AMD last nov. 16, 2007
http://techreport.com/discussions.x/13620
This is a big new capital for research and development. So the company itself is fine, it is only on the investor side has the problem, some have big fears how Phenoms will capture the lost market share, and gain the other or simple go down further to abyss.
November 22, 2007 7:14:26 AM

wolverinero79 said:
This is an excellent graph right now...

http://finance.google.com/finance?q=intc%2C+amd&hl=en

The start of the graph is Phenom's launch. Yes, the stocks correlate in terms of overall shape, but that's pretty drastic in terms of how far AMD has dropped in regards to INTC (that is, if you're looking at the graph on 11/21/2007...after today I guess it'll move). They may bounce back soon, but that's prreeeetty low.

The year to date (YTD) graph is even more telling. Intel up ~20%, AMD down more than 40%.
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. ;) 
November 22, 2007 9:02:16 AM

19 Nov 2007 nvr 4 get.
a b à CPUs
November 22, 2007 9:40:14 AM

chop the head off AMD ... vote 1 for Dirk !!!

November 22, 2007 10:06:00 AM

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!
November 22, 2007 10:29:30 AM

And with such a cool name... PHENOM... man, they should have spent more money in the R&D department and less on the marketing guys.
November 22, 2007 11:57:50 AM

dragonsprayer said:
a good american company need to buy amd before the arabs buy it for a few tankers of suv juice


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
November 22, 2007 12:20:31 PM

Some rich Saudi just read Dragonsprayer's comment and is opening his giant size check book just to spite him. (No offense to our foreign friends)
November 22, 2007 12:44:55 PM

If I had money, I'd invest in AMD right now. Unfortunately, I'm skint :(  :D 


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.
November 22, 2007 3:36:49 PM

JerryC said:
If your losses are equal to 25%, then perhaps you should pay more attention to your investments. That aside, a very good friend of mine once told me that the market is only down until the next upswing. Then its not down anymore.


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.
November 22, 2007 4:22:36 PM

TechnologyCoordinator said:
AMD One Month Ago: $14.49 per share
AMD Today: $10.83 per share

AMD shares were worth 33% more one month ago than they are today.

http://finance.google.com/finance?q=AMD
http://finance.yahoo.com/q?s=aMD


Don't blame this on the stock market. If the stock market lost 25% of its value in a month it would be a disaster. That would be like the Dow Jones going from 13,000 to 9,750. AMD losing 25% value in one month is just par for the course they're on.



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.
November 22, 2007 5:18:14 PM

TechnologyCoordinator said:
AMD One Month Ago: $14.49 per share
AMD Today: $10.83 per share

AMD shares were worth 33% more one month ago than they are today.

http://finance.google.com/finance?q=AMD
http://finance.yahoo.com/q?s=aMD


Don't blame this on the stock market. If the stock market lost 25% of its value in a month it would be a disaster. That would be like the Dow Jones going from 13,000 to 9,750. AMD losing 25% value in one month is just par for the course they're on.


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..........



November 22, 2007 5:35:04 PM

xrodney said:
I am not sure what you mean, but total assets own by AMD are much greater. Just look at semiconductor plants, they are a quite expensive assets.



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=AM...

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.
November 22, 2007 6:25:55 PM

TechnologyCoordinator said:
AMD One Month Ago: $14.49 per share
AMD Today: $10.83 per share

AMD shares were worth 33% more one month ago than they are today.

http://finance.google.com/finance?q=AMD
http://finance.yahoo.com/q?s=aMD


Don't blame this on the stock market. If the stock market lost 25% of its value in a month it would be a disaster. That would be like the Dow Jones going from 13,000 to 9,750. AMD losing 25% value in one month is just par for the course they're on.



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.





November 22, 2007 6:43:47 PM

exit2dos said:
The total value of AMD/ATI is getting frightenly close to what AMD paid for ATI.

Watch Nvidia buy AMD. :lol: 
November 22, 2007 7:18:38 PM

exit2dos said:
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=AM...

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.



Fanboy :kaola: 
November 22, 2007 7:38:03 PM

Heyyou27 said:
Watch Nvidia buy AMD. :lol: 


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.
November 22, 2007 10:09:23 PM

caamsa said:
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..........


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


TechnologyCoordinator said:
No, it's not the market. AMD has lost 25% percent of it's value per share in the last month. If the market did that we'd call it a crash!


Dow Jones Industrial Average One month ago: 13,521.62
Dow Jones Industrial Average today: 12,799.04
Difference: 722.58
DJIA Loss: 5.3%

Intel One Month Ago: 25.95
Intel Today: 24.63
Difference: 1.32
Intel Loss: 5.0%

AMD One Month Ago: $14.49 per share
AMD Today: $10.83 per share
Difference: 3.66
AMD Loss: 25.2%

So Intel is actually performing better than the market, while AMD's loses are 5 times greater than what the market is experiencing.

AMD simply can't blame the market when they are 5 times worse and Intel is actually doing better than the market.
November 22, 2007 10:10:32 PM

sailer said:
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.


I'd wait until 7 :-)


I bought GOOG at 180 and sold at 390, and I'm still pissed I sold then!
November 22, 2007 10:14:46 PM

turpit said:
Fanboy :kaola: 



You got that right.

Go Zilog!!!!


All hail the Triopoly!!!
November 22, 2007 10:17:37 PM

pogsnet said:
But in any case that there will be no more AMD then PC technology slows down.


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.
November 23, 2007 12:49:16 AM

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




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.
November 23, 2007 9:55:46 AM

caamsa said:
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.
November 23, 2007 10:54:55 AM

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.
November 23, 2007 11:30:36 AM

Heyyou27 said:
Watch Nvidia buy AMD. :lol: 



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.
a b à CPUs
a b À AMD
November 23, 2007 1:04:30 PM

TechnologyCoordinator said:
No, it's not the market. AMD has lost 25% percent of it's value per share in the last month. If the market did that we'd call it a crash!


Dow Jones Industrial Average One month ago: 13,521.62
Dow Jones Industrial Average today: 12,799.04
Difference: 722.58
DJIA Loss: 5.3%

Intel One Month Ago: 25.95
Intel Today: 24.63
Difference: 1.32
Intel Loss: 5.0%

AMD One Month Ago: $14.49 per share
AMD Today: $10.83 per share
Difference: 3.66
AMD Loss: 25.2%

So Intel is actually performing better than the market, while AMD's loses are 5 times greater than what the market is experiencing.

AMD simply can't blame the market when they are 5 times worse and Intel is actually doing better than the market.


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=