You think Advanced Micro Devices Inc. (NASDAQ:AMD) is a blank check?

Advanced Micro Devices AMD reported loss of 7 cents per share in first-quarter 2017, which matched the Zacks Consensus Estimate and was narrower than loss of 14 cents per share reported in the year-ago quarter.

Revenues increased 18.3% year over year to $984 million and exceeded the Zacks Consensus Estimate of $983 million. The year-over-year growth was primarily driven by higher GPU sales.

AMD’s shares fell almost 13% in pre-market trading. We note that shares have outperformed the Zacks Zacks Investment Research.

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) last traded at $10.39. The company”s performance year to date is -8.38%. The 200 day simple moving average is 6.58%. The 200 simple moving average (SMA) is considered a key indicator by traders and market analysts for determining the overall long-term trend. The price level in a market that coincides with the 200 SMA is recognized as a major support when price is above the 200 SMA or resistance when price is below the 200 SMA level.

As per recent filings, Advanced Micro Devices, Inc. (NASDAQ:AMD) has an insider ownership of 0.60%.

Advanced Micro Devices, Inc. is a world-class company with the innovation, execution, and vision to grow our leadership position in the industry. Today’s world-class companies share three essential characteristics. First, they deliver innovative products and technologies that customers want. Second, they have established a proven track record of fast, efficient manufacturing execution. And third, they have a bold vision of where to take their business, and often their industry. Over the course of AMD’s three decades in business, silicon and software have become the steel and plastic of the worldwide digital economy. Technology companies have become global pacesetters, making technical advances at a prodigious rate always driving the industry to deliver more and more, faster and faster. AMD’s dedication to customer-centric innovation and competitive spirit is an unbroken thread running from our early days in the integrated circuit business, through an ever-broadening product portfolio.

Advanced Micro Devices, Inc. (NASDAQ:AMD) has been storming Wallstreet with solid press release. Recently, the company announced that according to the March 2017 study commissioned by RetailMeNot and conducted by Forrester Consulting, the company’s mobile marketing solutions generate a three-year, risk-adjusted return on investment (ROI) of 4.3x.

The Exponential Moving Average (EMA) is similar to a simple moving average (average price over a set period) but it utilizes a weighting factor that exponentially declines from the most recent data point (recent prices are weighted higher than oil prices). EMA analysis compares the short term (5 days and 13 days), intermediate term (20 days) and long term (50 days) EMA’s. The respective EMA’s will give bullish signals when trading above trailing EMA’s and below the current price and vice versa. EMA alerts include crossovers (i.e the 5 day EMA crosses above/below the 20 day EMA) and EMA convergencies (5 day EMA equivalent to 13 day EMA). The 5 day EMA 11.73 is higher than the last trade price suggesting a short term bearish pattern building up. Long term, the 50 day EMA 12.97 is also higher than the current trading price depicting a bearish trend overall..

The Barchart Technical Opinion rating is a 72% Sell with a Strengthening short term outlook on maintaining the current direction. Longer term, the trend strength is Maximum. Long term indicators mostly agree with the trend.

Advanced Micro Devices, Inc. (NASDAQ:AMD) is all set to announce its earnings on May 01/a. As per Zack’s analyst ratings, Advanced Micro Devices, Inc. (NASDAQ:AMD) currently has an average brokerage rating of 2. On a scale of 1 to 5, a rating of 1 or 2 would indicate a buy, and a rating of 4 or 5 would signify a sell recommendation. A rating of 3 would indicate a hold on the stock. The consensus target price on (NASDAQ:AMD) is $12.09 with a high of $17 and a low of $5.

The relative strength index (RSI) is a momentum oscillator that is able to measure the velocity and magnitude of stock price changes. Momentum is calculated as the ratio of positive price changes to negative price changes. The RSI analysis compares the current RSI against neutral(50), oversold (30) and overbought (70) conditions. Alerts will inform you when stocks recede from oversold/overbought levels or breakthrough neutral (50). The current RSI is 28.60 suggesting a bearish price action.

As such, while we believe Advanced Micro Devices, Inc. (NASDAQ:AMD) represents a compelling growth story exposed to several secularly attractive markets, it would be interesting to see how it fairs for long-term investors.

 

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Brandon Manns

Brandon Manns

We have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. No compensation.