AMD Stock tanking afterhours

4saken

4saken

[H]F Junkie
Joined
Sep 14, 2004
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Just happened to be getting a drink in our break area and noticed a news alert talking about AMD stock has dropped 15% since the market close, over 3.50$. Talkign about the price war with intel etc. Thoughts?
 
Most likely prelim. reactions from the market due to C2D and Intel's aggressive marketing. Everyone is buying out C2D's and leaving X2's to stagnate. I'm sure it will pick back up once everything settles. Hopefully...
 
legendz411 said:
Most likely prelim. reactions from the market due to C2D and Intel's aggressive marketing. Everyone is buying out C2D's and leaving X2's to stagnate. I'm sure it will pick back up once everything settles. Hopefully...
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Yeah that is what I am hoping as well being that i do have interests in seeing this stock not fall 15%! I suppose the combo of the poor financial report and the Intel price war caused a lot of people to jump ship. Guess tomorrow will tell how well it rebounds or stabilizes.
 
The only news that I've heard regarding AMD today was that both AMD and Intel reported their 3rd Quarter earnings. Funny thing is that some of those reports are saying that Intel suffered a loss in 3Q profits due to the price wars.
 
tiraides said:
The only news that I've heard regarding AMD today was that both AMD and Intel reported their 3rd Quarter earnings. Funny thing is that some of those reports are saying that Intel suffered a loss in 3Q profits due to the price wars.
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We are up from Q2, though still down from Q3 last year. Also... there was the $100million write off on P4 CPUs due to the transition to Core2Duo.

I'd guess that AMD dropping has more to do with them getting a bunch of their lawsuit thrown out.
 
Disposition of the lawsuit was decided weeks ago. Processor sales remain very strong but margins are the concern ... they dropped from 56% to 51% for the quarter, no big surprise with dual core opterons going for $160 and single cores under $100 when just a few months ago they commanded twice that. No doubt Dell played hardball on price too.
 
so what do you think about the amd stock anyway? i mean, ive had it for a while but that $4 drop in afterhours is really pissing me off
 
jcll2002 said:
so what do you think about the amd stock anyway?
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I suggest that you make the investment decision based on the best information you can get and take your overall investment strategy and goals into account as well.

Does anyone have any idea why the stock dropped so sharply after trading?
 
Margins are down 5% which is substantial.

Price war + Dell put a lot of pressure on AMDs pricing.I'm beginning to think supplying Dell no matter the costs is a huge mistake.
 
savantu said:
I'm beginning to think supplying Dell no matter the costs is a huge mistake.
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HAHAHAHA.... why do you think hardly anybody over in the blue camp really cared about the Dell/AMD relationship. :D AMD can have em.
 
arcturus said:
Disposition of the lawsuit was decided weeks ago.
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While it may or may not be affecting AMD, it's DEFENITLY affecting Intel's stock. That's the big reason for the increases that have been happening over the past couple weeks.
 
Poncho said:
HAHAHAHA.... why do you think hardly anybody over in the blue camp really cared about the Dell/AMD relationship. :D AMD can have em.
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yes, yes, they did, because if a big manufacturer like Dell uses AMD cpus then it really doesn't matter if AMD cpus are better or not, more then nerds, enthusiasts, or people who buy e-machines, will know what AMD is, or buy AMD cpus.

Granted it was silly for them to sign the deal if they cannot meet supply.........on the other hand with core duo 2 thumping AMDs offerings they might have more cpus to ship to Dell.
 
As I Lay Dying said:
yes, yes, they did, because if a big manufacturer like Dell uses AMD cpus then it really doesn't matter if AMD cpus are better or not, more then nerds, enthusiasts, or people who buy e-machines, will know what AMD is, or buy AMD cpus.

Granted it was silly for them to sign the deal if they cannot meet supply.........on the other hand with core duo 2 thumping AMDs offerings they might have more cpus to ship to Dell.
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Actually... aside for the public message, nobody really cared. The reality is that we didn't make that much money off of Dell because we charged them so little... not to mention the headache that is working with them. We'll probably make more money off of them, even if they sell less Intel, because we charge more now. Dell carrying AMD was not a bad thing for Intel.
 
Poncho said:
Actually... aside for the public message, nobody really cared. The reality is that we didn't make that much money off of Dell because we charged them so little... not to mention the headache that is working with them. We'll probably make more money off of them, even if they sell less Intel, because we charge more now. Dell carrying AMD was not a bad thing for Intel.
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Well I imagine the number of CPUs that dell isn't buying has probably been picked up by apple any ways, but I agree with your post financially no one at Intel cared, but I imagine, the number of AMD cpus going to dell is small potatoes compared to Intel.

But public message could mean gains in server and desktop market, even small gains is good for AMD.
 
Poncho said:
Actually... aside for the public message, nobody really cared. The reality is that we didn't make that much money off of Dell because we charged them so little... not to mention the headache that is working with them. We'll probably make more money off of them, even if they sell less Intel, because we charge more now. Dell carrying AMD was not a bad thing for Intel.
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I imagine that even though Apple sells far less systems than Dell does, getting them on board mostly makes up or more than makes up for any lost Dell sales because of Apple's margins and the higher-end markets that they target.

I'd take Xeon and C2D sales to Apple over Celeron sales to Dell any day of the week.
 
isnt it not just dell i heard every major computer company is now selling AMD cpus in some of their pcs, even IBm is starting to and APPLE is the only intel only manufacturer
 
luke51087 said:
isnt it not just dell i heard every major computer company is now selling AMD cpus in some of their pcs, even IBm is starting to and APPLE is the only intel only manufacturer
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I recall, on the Inquirer, granted its the inquirer, so take is however you will, but Apple has stated they wont have a problem selling AMD cpus in their, machines. That being said, I think AMD is stretched thin in meeting demand......
 
As I Lay Dying said:
I recall, on the Inquirer, granted its the inquirer, so take is however you will, but Apple has stated they wont have a problem selling AMD cpus in their, machines. That being said, I think AMD is stretched thin in meeting demand......
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Maybe... but AMD could never meet the level of support that Apple demands. Really... they are the new dell. :D

As for Apple's marketshare... I have a feeling that it'll be increasing soon. If you've noticed their pricing is VERY competitive, the mac pro is actually cheaper than Dell, and if you combine a low price with their reputation... you have a winner. Think about it... Apple is a more recognized name then Dell or Intel even. They could really become a player in the market. But that's just speculation.
 
Poncho said:
Maybe... but AMD could never meet the level of support that Apple demands. Really... they are the new dell. :D

As for Apple's marketshare... I have a feeling that it'll be increasing soon. If you've noticed their pricing is VERY competitive, the mac pro is actually cheaper than Dell, and if you combine a low price with their reputation... you have a winner. Think about it... Apple is a more recognized name then Dell or Intel even. They could really become a player in the market. But that's just speculation.
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Yes they are very competitively priced, and they could very much so take a nice chunk. Apples are good computers, but if number of units increases so do the number of flawed machines, MAYBE.

That being said I am gonna divert a bit how many average consumers know they can run windows now, and when they do, run windows I imagine no matter how much apple tells people that they run windows they are open getting viruses and spyware, people will see apple ads and be like oh shit if I buy a mac no more viruses, and when they do get it, its gonna be shit hitting the fan, cause they are just gonna say but your ads. This might cause an unfair backlash on apple, and some of this is because apple marketing, pc vs. mac, a mac with windows is a pc, right?

Also I hope also if apple desktops do start taking gaining market share, I really hope that also means OSX gains in the desktop market share, hopefully that will maybe lessen microsofts death grip on the desktop market. Hopefully that means more hardware and software for linux and osx.

Uhhh......I don't know if my point came across, but I would like to see, Apple grow, but I don't want them to grow, if every thing that makes Apple is gone and they turn into the new Dell. I think even the hardcore fanatical Apple people can agree to that.
 
jcll2002 said:
so what do you think about the amd stock anyway? i mean, ive had it for a while but that $4 drop in afterhours is really pissing me off
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Here's an article on the AP wire from MSN money. It'll give you some idea as to why AMD slipped a bit:
http://news.moneycentral.msn.com/ticker/article.asp?Feed=AP&Date=20061019&ID=6118399&Symbol=US:AMD
As of this AM the stock price is listed as $24.23
http://moneycentral.msn.com/detail/stock_quote?Symbol=AMD
I've been watching it for months now and this seems to be part of the normal pattern; up a little, down a little. I'd be unhappy too, if I had invested in AMD and the price dropped but it isn't in free-fall. It has been holding pretty steady in the mid $20 range for awhile.
EDIT:
Wow - it sure did take a hit, just checked and it is just a little over $21 per share. That's gotta hurt a little. Well, hopefully they'll rebound by the end of the year.
 
savantu said:
Margins are down 5% which is substantial.

Price war + Dell put a lot of pressure on AMDs pricing.I'm beginning to think supplying Dell no matter the costs is a huge mistake.
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AMD is supplying a huge percentage of their production to Dell at a lower margin. Meanwhile, the normal distribution channels can't get enough AMD procs to build their boxes. In effect, each low-margin chip that Dell ships means one less high-margin chip shipping from someone else (one that will be replaced by an Intel Core). Intel is probably willing to give up half of Dell to move everyone else away from AMD.

Once Dell becomes AMD's largest customer, they can crank the pricing screws down as far as they want. Companies that end up with WalMart as their primary customer often go bankrupt.
 
This pissed me off royally. I bought more shares at exactly the wrong time. I'm convinced the investment will pay off eventually, but I could've saved/earned a pretty penny by trading at the right occasions.
 
Araanor said:
This pissed me off royally. I bought more shares at exactly the wrong time. I'm convinced the investment will pay off eventually, but I could've saved/earned a pretty penny by trading at the right occasions.
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Well yea isn't that the point of investing in stock ;-) it is always timing. That being said AMDs stock isn't hurting at all. Even down a couple dollars is nothing in the long haul. People always get caught up in the moment with stock and that is usually their downfall.
 
Yeah, this is the first time I'm investing in stock. I got caught up in the positive buzz just before IDF. I'll know better next time.
 
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