Home / Features / Advanced Micro Devices’s (NASDAQ:AMD) Management Is Primarily Interested In Marketing Rather Than Creating True Shareholder Value

Advanced Micro Devices’s (NASDAQ:AMD) Management Is Primarily Interested In Marketing Rather Than Creating True Shareholder Value

Advanced Micro Devices, Inc. (NASDAQ:AMD) [Trend Analysis] regains street interests, as shares raised 0.76% on Wednesday and it traded at $6.59. The 52-week high of the share price is -17.62% and 52-week low of the share price is 299.39%.

The investors of AMD were encouraged by graphics card market shares gain in June quarter, while based on the accessible evidence, AMD’s unit share gains achieved by sacrificing profitability. The graphics share gains are another example of AMD’s marketing of itself to investors, rather than creating true shareholder value.

Following fix Zen demonstration, in which AMD management made known that Zen had “outperformed” Intel’s (NASDAQ:INTC) Broadwell-E, I concluded that AMD’s management is primarily interested in marketing AMD to investors, rather than creating true shareholder value.

On the other side, AMD (NASDAQ:AMD) released on Tuesday that its AMD Embedded Radeon E9260 GPU has been selected by International Game Technology PLC (NYSE:IGT), for its new “CrystalCurve ULTRA gaming cabinet to drive dual 4K monitors at native resolutions that will be a first in the casino gaming industry.  IGT Senior Vice President and CTO, Gaming, Rachel Barber stated that AMD is a great partner for IGT. They are focus on providing their consumers with a thoroughly engaging entertainment experience.  AMD’s next-generation graphics processors based on new Polaris Architecture really set their new CrystalCurve ULTRA cabinet apart, with exceptional graphics and highly efficient processing capabilities.

“Gaming machine developers have very demanding needs, always driving towards greater levels of consumer engagement,” stated Colin Cureton, director of marketing and product management, AMD Enterprise Solutions. The CPU and GPU products of AMD continue to be non-competitive on a performance basis, but this is continually obfuscated by slogans such as “democratization” as well pyrrhic market shares gain. To divert investors from current state of AMD’s products and financials, future products continually being touted, sometimes years in advance of predictable release.

Rendering Analysts Views

Finally, analysts shed their light over the AMD price targets; maintaining price high target of 9.00 while at average the price target was 5.96 in contrast with the current price of 6.54. The price targets are usually acts as the boosters or blasters in the performance of stock. A higher price target would definitely provide confidence to investors during the trading action, consideration given by Wall Street Journal.

So does the rankings given by analysts; let us highlight rankings table and we had 7″ Analysts recommending BUY ratings for current month and for previous month 7 stands on similar situation; while 11 for the current month as compared to 9 analysts recommending for HOLD from the pool for previous month. While one stands at overweight and one analyst gave Underweight and 6 out of pool consider it as Sell for current month. For the overall, consensus ratings were for Hold.

Technical Analysis

Moving toward technical analysis, the current ratio, or the liquidity ratio of a company was calculated 1.60. This is an important indicator as a higher ratio typically suggests that investors are investing more confidently as compared to companies in the same industry has lower ratios. When calculating in the EPS estimates for the current year from sell-side analysts, the Price to current year EPS stands at -60.60%. Investors looking further ahead will note that the Price to next year’s EPS is 95.00%.

As for as concerns shares volumes, in share capital Advanced Micro Devices, Inc. (NASDAQ:AMD) has 895.01 million outstanding shares among them 890.46 million shares have been floated in market exchange. The firm’s institutional ownership remained 58.00% while insider ownership included 0.50%.

The stock showed weekly upbeat performance of 6.00%, which maintained for the month at -14.73%. Likewise, the positive performance for the quarter recorded as 27.73% and for the year was 293.98%, while the YTD performance remained at 127.87%.

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