Wall St. Continues Worries About AMD (AMD)

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By Douglas A. McIntyre Published
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Much of the strength in HP’s (HPQ) earnings yesterday came from PC sales, particularly laptops. After being up on its quarterly report, HP is fairly flat at mid-day, but chip provider Intel (INTC) is higher by 1.8% which should be expected when the world’s largest PC company does well.

But, the No.2 provider of chips for PC, AMD (AMD) is off 2.4% and trading within fifty cents of its 52-week low. Yesterday, the company launched its newest product, a quad-core chip. On Friday, AMD got $622 million from an investment arm of the Abu Dhabi government. The shares they bought were at $12.70. AMD is at $11.75 today.

The price drop seems out of place until investors look, once again, at AMD’s biggest short-term problem, its debt. AMD owes $5.1 billion in long-term debt and the company currently runs an operating deficit. Wall St, is concerned that the money AMD has raised is not enough.

Based on the company’s operating performance over the last year, it’s not.

Douglas A. McIntyre

Photo of 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.

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