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With the help of Microsoft and two downgrades, AMD's (AMD -13.6%) post-earnings selloff turned...

With the help of Microsoft and two downgrades, AMD's (AMD -13.6%) post-earnings selloff turned into a rout, as investors decided strong (Xbox One/PS4-fueled) revenue guidance was priced in. There was also disappointment over AMD's guidance for a Q3 gross margin of 36% (below Q2's adjusted 39%), which suggests its console wins literally came at a price. FBR (Outperform) argues long console lifecycles give AMD plenty of time to improve margins. SA contributor Ashraf Eassa is worried about low GPU division margins (attributed to game bundling), and the potential for further PC/server CPU share losses. AMD mentioned on its CC its Q/Q PC CPU unit growth was fueled by its Kabini (ultrabook) and Temash (tablet) platforms. (Q2: I, II)
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Comments (5)
  • Archman Investor
    , contributor
    Comments (2470) | Send Message
     
    Anyone with the ability to pull up a 30 year chart can see that AMD has truly been a horrible investment. This is just another example of Wall Street and their hype machine getting people hurt in this market.

     

    There is absolutely no investment to be made in AMD. None.
    If you are a trader you might make some $$ here and there.
    19 Jul 2013, 04:56 PM Reply Like
  • Stock Market Mike
    , contributor
    Comments (2273) | Send Message
     
    AMD is an awesome trader's stock. For every ~10-15% that INTC moves, they move about 50%. Fun, fun!
    19 Jul 2013, 05:43 PM Reply Like
  • stockalicious
    , contributor
    Comments (286) | Send Message
     
    Complete - you can pull up a 10yr chart of intel and see a whole lot of nothing. To say that AMD is the same old Intel clone is ridiculous - AMD for better or worse has taken a shot to go in another direction. Todays pummeling is probably more growing pains then anything else.

     

    as far as an investment - would you call apple one now? Intel? Msft? or have they all become a size where real growth is not realistic?
    19 Jul 2013, 05:36 PM Reply Like
  • theboys
    , contributor
    Comments (94) | Send Message
     
    It was my understanding that AMD pretty much expected this qtr to come in as it did. So from here is it slow climb up? I do agree that AMD for the 1st time is trying to take things in another direction. I agree that lower margins is not good, but long-term the product mix can help that.

     

    Many years ago, a tech company I knew personally very well was struggling to come out of a steep decline in sales, and of course profitability. I often personally called this company and would speak with various people about thoughts I had. One particular revealing talk was how tough it is to get the best deal when the cards are stacked against a company. So for AMD to survive they are put into a position perhaps of accepting deals that aren't the best ones financially just to get their product out the door and gain share and respect. The company I knew well eventually did rise and do well enough to eventually get bought up.

     

    My advice to AMD. Stay focused and don't listen to your detractors. As a business owner myself that heard all the negative talk before opening out doors, I know how hard it is to stay positive. We had the take a lot of abuse, which seems cruel looking back, but today are very successful.

     

    I wish AMD the best and most especially all their employees whose jobs are on the line.
    19 Jul 2013, 05:45 PM Reply Like
  • toonies
    , contributor
    Comments (422) | Send Message
     
    I like AMD as a company and I like its stock. Excellent stock for trading and now still very good as an investment for mid term horizon 1-2 years too. I am not worried about Q3, Q4 results, but this is not stock I can put under pillow and wait a few years for miracle without daily care about it. This stock can be more than golden egg, but only with appropriate care.
    21 Jul 2013, 07:49 PM Reply Like
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