AMD (AMD) Pays The Price
October 19, 2007 by Douglas A. McIntyreThere was a moment after AMD (AMD) released its earnings when the stock actually rose. Gross margins were up a bit. The Q3 loss was less than Q2.
There was a below market tender for some of AMD’s shares, but that should not push the stock down unless the current owners are a dull bunch.
No, AMD’s shares are off 5% because it has occurred to Wall St. that nothing has changed. AMD is in a long-term price war with Intel (INTC). AMD said they had picked up some market share especially in the notebook segment. Intel does not have to let that pass. It can afford to drop prices to get those customers back. AMD can’t
AMD gave a mysterious forecast for the next quarter. Its earnings would be seasonable based on the season nature of its business. Thank you for that. The company is likely to have earned itself another 52-week low. It’s just a matter of time.
Douglas A. McIntyre
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