Why Advanced Micro Devices, Alaska Air Group, and Dr Pepper Snapple Group Slumped Today
Wall Street finished down on Wednesday, and triple-digit losses for the Dow led major benchmarks lower by about half a percent. Earnings season continued to dominate the headlines, but some market participants are more nervous about broader-based macroeconomic calls suggesting that the 8-year-old bull market might finally be starting to run out of steam. Even some companies that posted relatively good earnings results lost ground, as their performance wasn't quite as good as investors had wanted to see. Moreover, some less-than-stellar news also weighed on certain individual stocks. Advanced Micro Devices (NASDAQ: AMD), Alaska Air Group (NYSE: ALK), and Dr Pepper Snapple Group (NYSE: DPS) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.
Shares of Advanced Micro Devices dropped 13.5% even though the chipmaker reported good financial results in its third-quarter report and pushed its guidance for the rest of the year higher as well. Sales were up by more than a quarter on strength from new product launches and a big acceleration in demand for graphics processing units due to soaring cryptocurrency prices. However, one piece of bad news came from the enterprise segment, where operating income fell by nearly two-fifths from year-ago results. Still, most of those following the stock attributed the share price decline to outsized expectations, and given just how far AMD had soared recently, it's not surprising to see some investors conclude that the stock had gotten ahead of itself.
Image source: AMD.
Source: Fool.com
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