facebook rss twitter

HEXUS.sharewatch: AMD fares worst in declining market

by Scott Bicheno on 19 January 2009, 12:23

Tags: Intel (NASDAQ:INTC), AMD (NYSE:AMD), NVIDIA (NASDAQ:NVDA)

Quick Link: HEXUS.net/qaqqo

Add to My Vault: x

There were quite a few pieces of news last week that, in normal times, you might have expected to have a profound effect on the share prices of the companies concerned. But, as we observed in our review of the week, these are not normal times.

On Tuesday, graphics company NVIDIA announced its quarterly results were going to be much worse than it had last advised. However, on the day its shares escaped punishment and by the end of the week they'd actually gone up over five percent on the week before.

Similarly while Intel's shares are a bit down on the week, they gained around three percent after it announced a profit drop of only 90 percent. We can only assume that what would normally be very bad results are considered perfectly reasonable in the current economic mess and had already been priced into the stock.

No such luck for AMD, however. While, in keeping with the above trends, it was rewarded with a small rise in share price following the revelation of 900 more redundancies, this wasn't enough to make up big falls earlier in the week. The assumption is that this week's AMD quarterlies will be at least as adversely affected by the global recession as Intel's were.

While Apple's shares are trading above the level they were immediately after CEO Steve Jobs announced his medical leave of absence, they were dropping in advance of the announcement. Meanwhile Yahoo! has unveiled its new CEO last week and you can see for yourself what investors thought of that.

Once more the distributors went in the opposite direction to the rest of the market.

 

Company Listing Share price 29/12/08 Share price 5/1/09 Share price 12/1/09 Share price 19/1/09 7-day change Market cap (bn)
AMD AMD 2.18 2.38 2.69 2.29 -14.9% 1.39
Apple AAPL 85.81 90.75 90.58 82.33 -9.1% 73.23
Avnet AVT 17.38 18.98 17.45 17.96 2.9% 2.71
Dell DELL 10.65 10.75 11.12 10.27 -7.6% 19.97
Google GOOG 300.36 321.32 315.07 299.67 -4.9% 94.32
HP HPQ 34.97 36.81 37.49 34.77 -7.3% 84.01
IBM IBM 81.33 87.37 84.70 84.92 0.3% 114.09
Ingram Micro IM 12.97 13.98 13.22 13.50 2.1% 2.23
Intel INTC 14.18 15.20 14.15 13.74 -2.9% 76.42
Microsoft MSFT 19.13 20.33 19.52 19.71 1.0% 175.33
Nvidia NVDA 7.51 8.71 7.93 7.99 0.8% 4.29
Tech Data TECD 17.00 18.80 19.15 19.41 1.4% 0.97
Yahoo YHOO 12.34 12.85 13.13 11.59 -11.7% 16.06
Dow .DJI 8515.55 9034.69 8599.18 8281.22 -3.7% N/A
FTSE 100 .FTSE 4216.59 4561.79 4448.54 4147.06 -6.8% N/A
NASDAQ .IXIC 1530.24 1632.21 1571.59 1529.33 -2.7% N/A


HEXUS Forums :: 3 Comments

Login with Forum Account

Don't have an account? Register today!
Posted by drunkenmaster - Tue 20 Jan 2009 09:00
Its a slightly simplistic view of the numbers just by looking at the numbers on a set day and checking the change.

Since the beginning of January, for whatever reason, AMD have a massive gain, the 2.69(which actually hit 2.85ish at one point) was simply an abnormally high stock price for this climate. IT came down just as sharply more as a correction.

Likewise Nvidia didn't have nearly as large a gain, AMD had gained about 15% more than Nvidia in the recent gains and a lot more than Intel IIRC. If you look at a month ago, Nvidia are actually roughly where they were, AMD are slightly up and Intel are down.

During most of last week Intel, AMD and Nvidia all lost pretty heavily, partially equalling out which is generally quite normal for January, most January's lots of companies get an overly enthusiastic boost followed by a mid to late January slump as that , assumingly, New Years eve buzz drys up. Either way, Friday was really the first day the stocks all rallied slightly. AMD however started its rally later and is most likely to rally higher than the current prices later this week.

For instance AMD on Friday hit a low of 2.05, as both Nvidia and Intel went lower, and all ralied throughout the day and made back some of those weeks loses. AMD were up over 10% from their low on friday alone.


I do think its a nice feature, but really the overly simplistic view can be incredibly misleading. Of the 3 companies I think AMD will easily do the best mid to long term 2-10 years and probably could be the most gaining short term stock over the next year also. But in this climate multiple companies are going up and down hugely on a daily/weekly basis and its really not a point in time in the stock market that a 3 day analysis holds any weight to whats really happening.
Posted by Scott B - Tue 20 Jan 2009 09:44
Thanks for the feedback drunkenmaster.

Bear in mind the feature only claims to be an update on the weekly movement of the stock, not a barometer of the historical health of the company and certainly not an indicator of what might happen.

Also, every company listed has a hyperlink to its Google Finance page where people can explore other timescales if they want.

I try to give some context in my editorial, but obviously there's a much bigger picture than a weekly snapshot can provide and, as ever, it's incumbent on individuals to research the matter as thoroughly as they need to.
Posted by drtdover - Tue 20 Jan 2009 13:26
my opinion on amd used to sell/ use 3or 4 processors a week if im lucky 1 a month now
it appears that the market has left amd behind increasingly consumers want laptops or net books. producing excellent graphics card for an ever dwindling desktop market not best placed for tomorrow. ramping up the numbers wil only work for so long.
they need a mobile platorm that competes