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.



Read more on AMD's fallen stock prices.

Ooh not good.

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

SPS said:

Ooh not good.

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Dicehunter said:

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

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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/mi...overnight_as_analysts_re-access_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.

WYP said:

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/mi...overnight_as_analysts_re-access_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.

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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.

SPS said:

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.

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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.

WYP said:

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.

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You think AMD is risky to invest in? Have a look at the AIM market lols. I understand how stocks work, I have several. You won't make much money from dividends unless you have a lot of shares. That requires a lot of money to invest. Also you don't need to invest in a company that makes good profit. You can invest in a company that is borderline broke and they can hit a good development and get a stock increase over 100% making you very rich. Just look at oil and gas companies.

SPS said:

You think AMD is risky to invest in? Have a look at the AIM market lols. I understand how stocks work, I have several. You won't make much money from dividends unless you have a lot of shares. That requires a lot of money to invest. Also you don't need to invest in a company that makes good profit. You can invest in a company that is borderline broke and they can hit a good development and get a stock increase over 100% making you very rich. Just look at oil and gas companies.

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TBH AMD seems to be on the way to profit, just saying it as a generalisation. AMD offers the potential for huge reward with short term stock price variations, but as can be seen today it offers a lot of chances for losses.

What needs to be considered here is short term and long term investments, if you want to make quick money you use riskier stocks with more potential for big gains, on the downside there will be chances of huge losses.

I see AMD them reaching profitability, which will make their share value soar, but that does not mean that it is a solid investment plan if you want to be in and out within the next month or within a few weeks.

As with anything else that has the chance to make your "get rich quick" there is also a huge chance to "lose your investment quick".

I remember looking at AMD's stock prices coming up to the Ryzen launch and seeing it decrease as it got closer and leaked performance was not the "intel killer" that some wanted.

I have no doubt that AMD's stock prices will increase this year, especially as they release Ryzen APUs, Ryzen 3 and some new GPU hardware. AMD are in a best position than they have been in years, but day-to-day trading will always have big chances for loss.

The lose for stock holders may sound bad but is not as terrible as it might seem for many. For a long time AMD stock was undervalued at around $2 a share a lot of people jumped on board during those prices. The current prices still reflect a large profit for that crowd.

The real impact of this dip will be seen over the stocks movement in the next week of so. Does the dip deepen in which case there is an issue or does it stabilize which reflects this was, as pointed out, just an end to the hype train.

AMD right now is sitting in a pretty good position if they leverage this correctly. They rule the mainstream market for new builds with Ryzen and the 500 series being clear winners in their brackets. With the proper push and promotions AMD can make some real gains in market share and pull in some solid capital.

The real concern is not the product lineup but the fact this is AMD. Historically they have been their own worst enemy with anemic marketing and poorly executed PR campaigns. They have relied on major partners like Asus, Gigabyte and MSI to help push them and these companies have in all honest never delivered. They have made great products for sure but they push Intel and nVidia in all their real market efforts.

AMD needs to attack this on their own or with partners that will throw in hard with them. They need to not be timid and start punching the competition. They have a product lineup they can pick a fight with, lets see if they do.

On the other hand you could look at it as a good time to invest in AMD shares as they are cheaper to buy right now.

Lyca50 said:

On the other hand you could look at it as a good time to invest in AMD shares as they are cheaper to buy right now.

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That's what I was thinking

This should have been expected though. The stock was already inflated. Nvidias stock is far more inflated, but they make profit, so it doesn't hurt it. There stock is just way over valued. I'm surprised it has fallen yet

Most stock analyst are reporting the sell-off came not on the Q1 Earns Report so much as it was the Q2 "Guidance" the AMD Brass gave to Stockholders in the just completed conference call.

What Su and Company said is they expect only small improvement in earnings for Q2 and they could still be in the Red.