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Earlier this week, AMD held its financial earnings call and while some silver linings were brought up, on the whole it seems that investors weren't too impressed. While AMD did see year-on-year revenue grow by 18 percent, the company also experienced the biggest single-day drop in stock value in over a decade.
The stock market can be a fickle thing, so while AMD's earnings report this week was in line with expectations, some decided to immediately jump ship, leading to a near 25 percent dip in share prices. As of today at the time of publishing, AMD shares now sit at $10.24 in value.
During its earnings report, AMD showed that it had generated $984 million in revenue, which is 18 percent better than last year. Losses had also lowered, dropping down from $73 million year-on-year to $29 million. With that in mind, AMD does appear to be on the right track in regards to returning to profitability.
AMD's Ryzen CPUs had only been on sale for one month of the last quarter and we are still waiting on Vega on the GPU side of things. This quarter, AMD will also be launching its Naples platform, so together, this should help contribute to growth in the next quarter.
KitGuru Says: While AMD may have had its biggest value drop in many years this week, the company still has legs to stand on with new product launches planned for this quarter. If Naples can impress in the datacenter world and Vega can drum up some GPU sales, then things should start to bounce back.
I wonder what all those stockholders had expected? AMD to take over Intel’s share in a matter of months? Their new line is incredibly competitive and I don’t doubt that as more hardware manufacturers start introducing new stuff like laptops, they’ll offer more AMD hardware as well.
Already I’m seeing the most recent recommended gaming PCs specs being purely AMD, unless you want the really high end stuff. But for basic or moderate gaming, it’s better to go with AMD. It’s a matter of time before the company is profitable.
I guess even middle term is too much for some.
Standard stockholder sheep mentality. Frankly it is worrying that trillions of dollars is messed around by these clowns.
“But cpus are like iphones and sell millions on day one with pre-orders right? ”
I seriously wouldn’t be surprised if that is their logic behind this.
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“Buy the hype and sell the news.” As the old adage goes. The main issue here is the institution investors. When the news was bad and AMD’s stock was in the sewer they walked away. Then they bought on RX480 hype and again on more Ryzen hype. “Well we gave them 3 quarters and still no profits? WTF sell.” The institutions don’t think. They have their formulas and computer models that say sell. They also have billions they play with and people that demand immediate returns. And they have no real long range thought. It’s a quarter or two down the road. That’s why Micheal Dell bought back his company. They wouldn’t care if in 4 years Dell would be a shell. They made their 8%.
AMD isn’t really going to start making some real profits until Naples comes online. But of course they’ll wait until the hype kicks in to overdrive before they buy AMD again.