Advanced Micro Devices (AMD) Stock: Tumbling On Painful Outlook

Advanced Micro Devices AMD Stock NewsAdvanced Micro Devices, Inc. (NASDAQ: AMD) is having an overwhelmingly rough day in the market today, and for good reason. The company released its earnings, missing expectations and dampening the outlook due to blues in the cryptocurrency space. As you would imagine, the news upset investors, sending the stock tumbling down. Today, we’ll talk about:

  • The report;
  • what we’re seeing from AMD as a result; and
  • what we’ll be watching for with regard to the stock ahead.

AMD Is Struggling

As mentioned above, Advanced Micro Devices is having a rough start to the trading session this morning after the company announced its earnings. Here’s what we saw:

  • Revenue – In terms of revenue, AMD missed the mark. During the quarter, the analysts were expecting that the company would generate revenue of about $1.7 billion. However, the company reported revenue of $1.65 billion. While the figure was up from the $1.58 billion reported in the same quarter last year, the missed expectations were painful.
  • Computing Graphics Sales – This was a big issue for the company. During the quarter, computing graphics sales only came to $938 million. Analysts wanted to see $1.05 billion.
  • Guidance – AMD said that it is expecting to generate between $1.4 and $1.5 billion in revenue in the fourth quarter. Analysts are expecting that the company will generate $1.7 billion.

A big issue for Advanced Micro Devices has to do with cryptocurrency. After all, cryptocurrency miners were major players when it came to the sale of the company’s products. However, with crypto values down, sales are expected to be down as well. In fact, the company expects that it could take a couple of quarters to get back to normal with regard to revenue growth.

Investor Reactions Are Anything But Positive

Earnings reports are the most recent financial data we get as investors, and a bad one can lead to serious pain for a stock. In the case of AMD, the earnings report was anything but positive, leaving investors upset and sending the stock tumbling for the bottom. Of course, our partners at Trade Ideas were the first to alert us to the declines. Currently (10:47), AMD is trading at $19.40 per share after a loss of $3.39 per share or 14.88% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on AMD. In particular, we’re interested in following the story surrounding the company’s work to bring revenue growth back to where investors want to see it. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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