AMD Crushes Earnings, but Gets Downgraded Immediately: What You Need to Know

AMD Crushes Earnings, but Gets Downgraded Immediately: What You Need to Know

Every day, Wall Street analysts upgrade some stocks, downgrade others, and "initiate coverage" on a few more. But do these analysts even know what they're talking about? Today, we're taking one high-profile Wall Street pick and putting it under the microscope...

By all rights, owners of Advanced Micro Devices (NASDAQ: AMD) stock should be celebrating today. On Tuesday after close of trading, AMD reported an 19% increase in revenue featuring a 51% surge in revenue from its computing and graphics division. Headlines are calling the quarter not just an "earnings beat" but a "blowout," and one in which AMD "gave investors what they wanted," up to and including "upbeat guidance" on top of strong actual results. AMD stock is surging better than 9% in response to the news.

And then BMO Capital downgraded it.

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Source: Fool.com