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[MAX PC] How Low Can You Go, AMD Stock Drops Below $2

17K views 202 replies 119 participants last post by  Shiftstealth 
#1 ·
Quote:
We hate to say it, but AMD might be circling the drain. If not, it's at least uncomfortably close to the basin. Stacy Rasgon, an analyst with Bernstein Research, described AMD as "univestable" at this point.

AMD's revenue in the third quarter of 2012 was down 25 percent compared to one year prior, resulting in a net loss of $157 million and an operating loss of $131 million.

"The PC industry is going through a period of very significant change that is impacting both the ecosystem and AMD," AMD president and CEO, Rory Read, said in a statement when announcing the company's Q3 financial results. "It is clear that the trends we knew would re-shape the industry are happening at a much faster pace than we anticipated. As a result, we must accelerate our strategic initiatives to position AMD to take advantage of these shifts and put in place a lower cost business model."
Right now AMD is sitting at a cool $1.84 a share

Source
 
#9 ·
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Originally Posted by coachmark2 View Post

biggrin.gif
We'd need more than a few million to bail their butts out. Which is really sad, right? I mean, Intel is great and all, but as has been stated 10,001 times on these forums, AMD needs to exist competitively or else Intel will have no reason to innovate.
arm
 
#10 ·
I'm not really an AMD CPU fan, but I still love ATI cards over nVidia. I guess with Intel becoming a giant once again in the CPU world, and rumors of an ARM desktop CPU, AMD is seen as in trouble.

Keep in mind though, dropping stock does not necessarily mean the product is bad or the company is going under. Rather it's more of a investor perspective on a companies ability to turn a profit and yield increasing returns over time. AMD could remain a viable CPU producer, yet have horrible stock prices due to an inability to either further cut costs, or recapture the market in the near future.
 
#11 ·
Quote:
Originally Posted by coachmark2 View Post

biggrin.gif
We'd need more than a few million to bail their butts out. Which is really sad, right? I mean, Intel is great and all, but as has been stated 10,001 times on these forums, AMD needs to exist competitively or else Intel will have no reason to innovate.
As pointed out ARM will be the main "competition" for Intel in the consumer market but Intel has already pushed back several plans recently I thought as the news got worse for AMD (and as they got hit with some lower demand as well). My whole question though is with the heavy push to cloud (READ: end user no longer "owning" software or digital property) how much compute power really is necessary? As much as I find it amusing and laugh at people trying to do things like powerpoints or even papers on pads/phones...that seems to be the direction that the consumers want to take the market and there isn't a need for a processor much beyond an Atom in terms of compute performance in that ecosystem. I hope that AMD doesn't go down but it seems to further the point that consumers don't care about real computers and are more interested in "dumb terminals".

PS: Doesn't the stock market delist a stock if it drops below $1 per share?
 
#13 ·
Quote:
Originally Posted by Dimaggio1103 View Post

Not looking too good.
After their fall from what Intel did to them through illegal business practices, you can clearly see in that graph that AMD just was never able to recover. Really sucks watching the company that as a rookie to the industry really rocked Intel and due to a cheap shot they are loosing ground hand over fist.
 
#14 ·
I just wonder...does anyone even code to take advantage of both CPU maker's features fully for each of their CPUs or do they go generic?
Quote:
Originally Posted by Overkill View Post

Stocks are all speculative so this doesn't mean anything. You're more likely to find area-51 test subjects with video evidence than a stock market post with useful information. AMD aren't going anywhere.
Stocks are based on the market's belief in the companies value and that entails things like the ability of the company to pay it's debts among other things. So there's more than just speculation going on (at least with serious investors it's not pure speculation alone).
 
#19 ·
Quote:
Originally Posted by Magariz View Post

After their fall from what Intel did to them through illegal business practices, you can clearly see in that graph that AMD just was never able to recover. Really sucks watching the company that as a rookie to the industry really rocked Intel and due to a cheap shot they are loosing ground hand over fist.
Uhh no. This is a result of terrible mismanagement (sitting on their arse once they developed Athlon 64) on AMD's part and significantly overpaying for ATI.
 
#21 ·
Quote:
Originally Posted by Magariz View Post

After their fall from what Intel did to them through illegal business practices, you can clearly see in that graph that AMD just was never able to recover. Really sucks watching the company that as a rookie to the industry really rocked Intel and due to a cheap shot they are loosing ground hand over fist.
I'm sure that Intel's practices had an effect, but AMD's major issues lie elsewhere - with marketing and management.
 
#23 ·
Stock prices are not a good indication of how well a company is doing. It is simply another way we humans have invented to move money. Even if a company does well, there is no guarantee that stocks will rise. Remember that in order for prices to rise, there needs to be sufficient demand to warrant such. And since not everyone who is able to purchase AMD stock holds at least a bachelors degree in economics we can not assume it will have a direct relationship.

Remember the facebook IPO? News stations went on streets asking people what they thought, most people reacted positively usually citing its popularity and heavy integration in most peoples lives.

It can be a decent indicator of how well a company is doing, but it is not absolute. Stocks are more like the polls are to politicials, just a quick rough look at where they are currently.

MS stocks have never really been sky high, yet it is still the most widely used operating system today. By all means, MS stocks should be much higher than that. (26 dollars or so)

If you can predict stock prices, you can see into the future.
 
#26 ·
Quote:
Originally Posted by timma100 View Post

Everyone's jumping ship, I can't blame them
frown.gif
I'm sure employees had retirement funds in stock.... and they're just watching it melt away
Investing in the company you work for is stupid... as if the company goes under, you lose your job AND investments. Never put all the eggs on the same basket
thumb.gif

Quote:
Originally Posted by Sylon View Post

Stock prices are not a good indication of how well a company is doing. It is simply another way we humans have invented to move money. Even if a company does well, there is no guarantee that stocks will rise. Remember that in order for prices to rise, there needs to be sufficient demand to warrant such. And since not everyone who is able to purchase AMD stock holds at least a bachelors degree in economics we can not assume it will have a direct relationship.
Remember the facebook IPO? News stations went on streets asking people what they thought, most people reacted positively usually citing its popularity and heavy integration in most peoples lives.
It can be a decent indicator of how well a company is doing, but it is not absolute. Stocks are more like the polls are to politicials, just a quick rough look at where they are currently.
MS stocks have never really been sky high, yet it is still the most widely used operating system today. By all means, MS stocks should be much higher than that. (26 dollars or so)
If you can predict stock prices, you can see into the future.
Stock prices are a good indication of the PERCEPTION the market has for a given company.
 
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