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Published: May 3, 2017 | Source: MarketWatch | Author: Mark Campbell

AMD stocks have fallen over 20% in 24 hours

AMD stocks have fallen over 20% in 24 hours

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. This is the largest single-day crash in AMD’s stock value in 12-years, only beaten by AMD’s 26.2% plummet in January 2005. 
 
This fall comes after AMD released their Q1 2017 financial results, which shown AMD increase their revenue by 18% and a lower operating loss than previous quarters. In these results, AMD has also revealed a lower than expected Q2 margins. 
 
The big question is not why AMD’s stock price decreased, after all, the company is still losing money every quarter. AMD have mostly met expectations for their Q1 financial results, with this drop being attributed to investors over-estimating the value of AMD and expecting a “perfect” Q1 for the company. 
 
With AMD’s stock price increasing over 330% in the past year, it is no surprise that AMD has been overvalued, setting high targets for the company and bringing in a long list of new investors into AMD’s stocks. With this increased interest, a huge amount of hype has been built around AMD which has no doubt set the bar for too high for AMD’s Q1 performance. 

  

AMD stocks have fallen over 20% in 24 hours

 

With the release of Ryzen being so recent, it is unsurprising that AMD’s financial look like this, as their new CPU architecture, has barely had any time to increase AMD’s Q1 sales. It must be remembered that their more affordable Ryzen 5 CPUs only released at the start of Q2 and that AMD’s other 2017 products like Naples and Vega are scheduled for release later in Q2. 

Right now financial firms are setting stock targets of between $9 and $12, which means that AMD’s stocks are unlikely to get back to their $13 levels anytime soon. 

AMD stocks have fallen over 20% in 24 hours

 

  

Right now AMD’s financial performance is as expected, with the company seemingly on track to balance their books in the longer term with further Ryzen sales in both the server and consumer markets. 

 

You can join the discussion on AMD’s stock prices falling on the OC3D Forums.

 

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