AMD stock gets hammered, rumors about more layoffs

Posted on Wednesday, Jul 08 2015 @ 12:19 CEST by Thomas De Maesschalck
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AMD's late announcement that second-quarter revenue would decline by 8 percent, versus previous guidance of down 3 percent, plus or minus 3 percent, severely disappointed investors.

While the S&P500 ended 0.61 percent in the green as the broad market shook off fears about China's stock market crisis and Greece's financial fiasco, AMD shares collapsed 15.35 percent to $2.09 on heavy volume.

Shares hit an intra-day low of $2.02 on Tuesday, the lowest level since late 2012. Since the start of the year, AMD shares are down 21.72 percent and compared to a year ago they've collapsed 50.71 percent.

With poor demand for its products and little hope for improvement until the Zen architecture arrives, it's not unthinkable the firm will have to take drastic measures once more to keep itself afloat. While nothing but rumors for now, FUD Zilla claims AMD will have another round of layoffs very soon. The site claims this round of job cuts will likely affect the sales and marketing division as well as some less profitable parts of the company.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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