Just something I noticed about Apple's and AMD's stock prices after an Earning Report.

[Vitalius]

As some of you know, I watch the stock market from time to time (as do other users here). 

I saw this story on Wired about Apple's stock tanking after ER. While reading it, I realized it was copying AMD. Obviously they don't make as much money as Apple (not by a long shot), but the principle is the same. After every ER, even if the news is positive, their stock drops hard in after market trading. 

Apple's dropped 9% after their ER, according to that article. 

While AMD's dropped 11% or so after their ER. 

It could be argued that the reason for this was because AMD has been losing money until last ER while Apple is just weird due to it's size and business, but even after AMD's latest ER where they beat expectations like Apple did, but their stock tanked anyway. 

It's kind of crazy honestly. Even when the entire market is doing good, their ER's mean pain for these two companies, and I can't understand why. 



 

[Almercenary]

Maybe it's because of lack of hype, usually shares go up when there's more hype and vice versa

[xox]

Well, Carl Icahn slits his wrists more at the sight of each and every stock drop at Apple.

AMD on the other hand need to get their shut together in my opinion. If they were doing business properly, they perhaps wouldn't be at a loss at all.

[speciealpha]

umm, I think you are over-simplifying the market. AMD beat expectations somewhat, but they also predicted a significant revenue drop. Which is what most stock forecasters predicted is the reason for the stock decline. 

 

 

Apple on the other hand has been a little shotty these past few years. There are a lot of reasons for it to go down. For instance more bad news on it's smartphone market share, the fact that revenue didn't grow despite several product refreshes, etc. 

 

Positive ERs aren't the only thing deciding stock price. 

 

It's kind of crazy honestly. Even when the entire market is doing good, their ER's mean pain for these two companies, and I can't understand why. 

[speciealpha]

Well, Carl Icahn slits his wrists more at the sight of each and every stock drop at Apple.

AMD on the other hand need to get their shut together in my opinion. If they were doing business properly, they perhaps wouldn't be at a loss at all.

What do you mean? They aren't at a loss, AMD made a profit last quarter. What bad business decisions is AMD making? 

[xox]

What do you mean? They aren't at a loss, AMD made a profit last quarter. What bad business decisions is AMD making?

Should've put more money into R&D. The bulldozer lineup was such a disappointment. It's not the business decisions they are making now that's affecting them, it's the ones they made a few years back.

[Osmium]

Should've put more money into R&D. The bulldozer lineup was such a disappointment. It's not the business decisions they are making now that's affecting them, it's the ones they made a few years back.

 

Pretty much. In a few years AMD better pull an ace when the fx series comes back otherwise they will not ever be able to trade blows with Intel. By the time the fx series is back (2016 was last I heard) I predict Intel will be neck and neck with AMD for GPU performance.

[speciealpha]

AMD has been decreasing their total R&D budget for years. http://ycharts.com/companies/AMD/r_and_d_expense

[xox]

Pretty much. In a few years AMD better pull an ace when the fx series comes back otherwise they will not ever be able to trade blows with Intel. By the time the fx series is back (2016 was last I heard) I predict Intel will be neck and neck with AMD for GPU performance.

Indeed, I would ideally like to see a completely new platform from AMD. Socked AM3+ is a terrible socket, has been outdated for years, they need to actually be releasing good processors, rather than being walked all over by Intel. Would quite like to see some low-TDP parts from them too (preferably not just laptop processors) I'm talking 35 watt like Intel is doing with the T skew.

[Osmium]

Indeed, I would ideally like to see a completely new platform from AMD. Socked AM3+ is a terrible socket, has been outdated for years, they need to actually be releasing good processors, rather than being walked all over by Intel. Would quite like to see some low-TDP parts from them too (preferably not just laptop processors) I'm talking 35 watt like Intel is doing with the T skew.

But intel has gone so far into the mobile low tdp area it would be a good opportunity for AMD to hit hard with a stellar performer. Sure TDP would be good but if I had to use 100+ watts to get an 8 core CPU that outperforms intel in single threaded apps I would buy that in a heartbeat.

[hawaiims]

Well, Carl Icahn slits his wrists more at the sight of each and every stock drop at Apple.

AMD on the other hand need to get their shut together in my opinion. If they were doing business properly, they perhaps wouldn't be at a loss at all.

Carl Icahn just bought 500 million dollars of apple share today, So I don't think he's giving up hope. I agree with you though. Apple hasn't had anything exciting since jobs, and it's starting to show really well. Tim cook should be replaced because he's a sales guy, not an actual entrepreneur. 

[Fred Castellum]

When you see stocks drop after a positive earnings report especially in after hours it usually means the shorters are dumping their shares in hopes of getting back in again.