Advanced Micro Devices (AMD) experienced a decline of 7.51% in its stock price in the post-market session on October 29, 2024, which can be attributed to the following factors1:
- Mixed Q3 Results and Light Guidance: AMD reported third-quarter earnings that met expectations with revenue slightly above forecasts, but the company's stock price fell due to a disappointing forecast for the fourth quarter. AMD predicted sales of $7.5 billion for the current period, which is a tad below Wall Street's estimate of $7.55 billion. This slight miss in guidance often leads to concerns among investors about the sustainability of AMD's high earnings and the potential for future growth23.
- Cost Increase and Shortfall in Net Income: Despite revenue growth, AMD's net income for the quarter was lower than expected, missing the mark by approximately $472 million. This shortfall, coupled with rising costs, led to a decline in profitability and contributed to the negative sentiment surrounding the stock3.
In summary, AMD's stock drop in the post-market session can be attributed to a combination of mixed quarterly results, light guidance for the next quarter, and a shortfall in net income. These factors collectively create a narrative of caution for investors, leading to a decline in the stock's price.
10/29/2024 10:50pm
