Advanced Micro Devices, Inc. (AMD) stock is down more than 5% as of midday trading on Wednesday, as a market-wide selloff and a disappointing earnings outlook combined to crush shares.
AMD reported fourth-quarter and full-year 2015 results after the closing bell on Wednesday, logging a non-GAAP net loss of 10 cents per share, just as analysts expected. It actually managed to exceed expectations on revenue — barely — with $958 million, while the consensus was $954.7 million.
It was the company’s forecasts that sent AMD stock tumbling: The chipmaker expects Q1 revenue to tumble 14% sequentially, plus or minus 3 percentage points, giving a range of $795.1 million to $852.6 million, and a midpoint of $823.9 million. That’s well below consensus estimates, which call for revenue of $894.92 million in the current quarter.
The disappointing guidance is largely due to a slowdown in China, whose slowing growth is causing reverberations throughout global markets, and not just in technology. Oil prices plunged more than 5% today as investors worry that less demand from Asia and a global supply glut will combine to keep prices low for the foreseeable future.
AMD stock continues to get beaten down in 2016, and shares have already lost more than 35% to-date. Over the last year, shares are off nearly 19%, and in the last five years the stock is off more than 77%.
As of this writing, Robert Martin did not hold a position in any of the aforementioned securities.
