AMD (AMD) Pays The Price

By Douglas A. McIntyre Published Oct 19, 9:45AM EDT

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There 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

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.