AMD stocks have fallen over 20% in 24 hours

AMD stocks have fallen over 20% in 24 hours - The largest single day fall in over 12 years.

AMD stocks have fallen over 20% in 24 hours

AMD stocks have fallen over 20% in 24 hours

 
AMD stocks have fallen over 20% in 24 hours after the release of the companies Q1-2017 financial results, dropping AMD's stock value to $10.30. This is the largest single-day crash in AMD's stock value in 12-years, only beaten by AMD's 26.2% plummet in January 2005. 
 
This fall comes after AMD released their Q1 2017 financial results, which shown AMD increase their revenue by 18% and a lower operating loss than previous quarters. In these results, AMD has also revealed a lower than expected Q2 margins. 
 
The big question is not why AMD's stock price decreased, after all, the company is still losing money every quarter. AMD have mostly met expectations for their Q1 financial results, with this drop being attributed to investors over-estimating the value of AMD and expecting a "perfect" Q1 for the company. 
 
With AMD's stock price increasing over 330% in the past year, it is no surprise that AMD has been overvalued, setting high targets for the company and bringing in a long list of new investors into AMD's stocks. With this increased interest, a huge amount of hype has been built around AMD which has no doubt set the bar for too high for AMD's Q1 performance. 

  

AMD stocks have fallen over 20% in 24 hours

 

With the release of Ryzen being so recent, it is unsurprising that AMD's financial look like this, as their new CPU architecture, has barely had any time to increase AMD's Q1 sales. It must be remembered that their more affordable Ryzen 5 CPUs only released at the start of Q2 and that AMD's other 2017 products like Naples and Vega are scheduled for release later in Q2. 

Right now financial firms are setting stock targets of between $9 and $12, which means that AMD's stocks are unlikely to get back to their $13+ levels anytime soon. 


AMD stocks have fallen over 20% in 24 hours

 

  

Right now AMD's financial performance is as expected, with the company seemingly on track to balance their books in the longer term with further Ryzen sales in both the server and consumer markets. 

 

You can join the discussion on AMD's stock prices falling on the OC3D Forums.

 

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Most Recent Comments

03-05-2017, 05:40:44

SPS
Ooh not good.Quote

03-05-2017, 05:55:35

Dicehunter
Maybe if they released Vega sooner rather than later they could have avoided this.Quote

03-05-2017, 06:04:19

WYP
Quote:
Originally Posted by SPS View Post
Ooh not good.
Quote:
Originally Posted by Dicehunter View Post
Maybe if they released Vega sooner rather than later they could have avoided this.
You need to remember that any changes in stock value do not affect the company, AMD has not lost any money over this. This is only a hit to their reputation, though even then it is more of a hit to those who overvalued the stock previously.

At worst some AMD employees are disheartened that the stock market does not value their company highly, but this changes nothing.

AMD's obligation to their stockholders is to do their best to make a profit so that they can be paid for their contribution to the company. Even as stock values change, the money that the original stocks sold for does not change, so this hit in no way harms AMD.

Right now, AMD is performing as expected. The stock market has simply fallen for their own hype train after the recent increases in AMD's value. We need only remember Nvidia's 10% drop in value for similar reasons back in January.

https://www.overclock3d.net/news/mis..._the_company/1

Much like consumers, stock markets can easily fall for hype trains, be it for Nvidia thinking that there will be higher sales for GPU for AI etc or for AMD when they no doubt expected a better forecast for Q2.Quote

03-05-2017, 06:32:29

SPS
Quote:
Originally Posted by WYP View Post
You need to remember that any changes in stock value do not affect the company, AMD has not lost any money over this. This is only a hit to their reputation, though even then it is more of a hit to those who overvalued the stock previously.

At worst some AMD employees are disheartened that the stock market does not value their company highly, but this changes nothing.

AMD's obligation to their stockholders is to do their best to make a profit so that they can be paid for their contribution to the company. Even as stock values change, the money that the original stocks sold for does not change, so this hit in no way harms AMD.

Right now, AMD is performing as expected. The stock market has simply fallen for their own hype train after the recent increases in AMD's value. We need only remember Nvidia's 10% drop in value for similar reasons back in January.

https://www.overclock3d.net/news/mis..._the_company/1

Much like consumers, stock markets can easily fall for hype trains, be it for Nvidia thinking that there will be higher sales for GPU for AI etc or for AMD when they no doubt expected a better forecast for Q2.
I was referring to not good for the current stock holders. 20% is not an ideal loss. Though I do expect it to recover from this.Quote

03-05-2017, 07:07:06

WYP
Quote:
Originally Posted by SPS View Post
I was referring to not good for the current stock holders. 20% is not an ideal loss. Though I do expect it to recover from this.
TBH the stock market is always volatile, you either risk money on companies like AMD for the potential of profit when share values increase, or put your money in a reliable company with profits where you can make earnings per share.

Investing in a company that does not currently make a profit is a huge gamble, as stock prices are so changeable. AMD will not be a "stable investment" until they can prove that they can reliably make a profit.Quote
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