|Bid||34.65 x 900|
|Ask||34.65 x 800|
|Day's Range||34.64 - 34.83|
|52 Week Range||18.76 - 36.64|
|Beta (3Y Monthly)||0.49|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
How do we determine whether Cray Inc. (NASDAQ:CRAY) makes for a good investment at the moment? We analyze the sentiment of a select group of the very best investors in the world, who spend immense amounts of time and resources studying companies. They may not always be right (no one is), but data shows that […]
"Sell in May and go away" is an often-repeated saying on Wall Street. Some years this old adage doesn't apply, but in 2019, the markets have lived to their seasonal reputation in May. Yet Advanced Micro Devices (NASDAQ:AMD) has been one of the few tech companies that have not been as adversely affected as the broader market. Instead, during the past month, it has traded within a range of $26.03-$29.67. AMD stock finished the month at $27.41.Source: Shutterstock However, I believe that there is still room for correction in AMD as a swift resolution to trade tensions is not likely to happen. Therefore, long-term investors can possibly find a lower and thus more favorable entry price into Advanced Micro Devices shares during this volatile phase.Here is why…InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 6 Big Dividend Stocks to Buy as Yields Plunge AMD and the CompetitionAMD is part of the semiconductor industry. This is a highly competitive sector where companies have to stay on the leading edge of technological advances. Product developments and economic cycles both in the U.S. and globally affect their revenues and thus the stock prices.On May 7, the U.S. Department of Energy announced that Advanced Micro Devices and Cray (NASDAQ:CRAY) had been awarded a $600 million contract to develop the 'Frontier' supercomputer. Expected to become the world's fastest computer, Frontier will perform advanced calculations in areas like nuclear and climate research.This important deal confirms that AMD is now a recognized industry leader that can better rival its two main competitors, i.e., Intel (NASDAQ:INTC) and NVIDIA Corporation (NASDAQ:NVDA).In other words, AMD has a roadmap to compete with Intel's dominant CPUs and Nvidia in the graphics-card space. Investors in Advanced Micro Devices stock are also hopeful that the company may grab market share from its two rivals.Share prices of both INTC and NVDA have suffered considerably in May: INTC stock has fallen over 25% and NVDA stock is down over 30%.Intel has especially been facing headwinds in the data center business, its main driver of growth. On April 25, the company issued a warning for the next quarter and lowered its guidance for the year. Datacenter chips have high gross margins; therefore shareholders have penalized Intel shares since this latest warning.NVDA stock has also fallen the past few weeks, especially on the back of data center worries, sales weakness in China and excess inventory correction. Many analysts suggest that NVDA stock's pain may not yet be over.Similarly, on April 30, when Advanced Micro Devices released earnings, its quarterly revenue was down 23% year-over-year. Net income was also down 80% to $16 million.Going forward, like its rivals, AMD is hoping for a pickup in demand. Retail shareholders shouldn't use hope as an investment strategy. If AMD management were to announce yet another revenue or earnings drop soon, Wall Street may decide to hit the "sell" button on the stock.On a final note, the trailing P/E ratio for AMD stock stands at a hefty 106. In comparison, Intel's is 10 and Nvidia's is 25. Therefore if there are any adverse headlines or potential earnings warnings either from AMD or any of its peers, the share price of Advanced Micro Devices could easily go down.In other words, a high P/E ratio also contributes to the volatility in a given stock's price as shareholders tend to regard it as a growth stock and react to earnings reports and other headlines rather fast. Thus investors may decide not to reward AMD with such a high P/E multiple if they fear the stock's growth trajectory is somewhat not on track. Analyst Enthusiasm Is WaningThe escalating trade wars with Beijing coupled with the most recent uncertainty over potential tariffs on Mexican products have sent markets on a downward spiral. Not only stocks, but also many major market indices, and the ETFs that track these indices have sold off.China consumes more than 50% of all semiconductors made worldwide. Furthermore, many U.S. technology companies either have manufacturing plants in China or use Chinese companies in their supply chains. Therefore, Wall Street fears that U.S. chip makers will be among the largest losers of the trade war.The widely followed PHLX Semiconductor Index (INDEXNASDAQ:SOX) is down over 15%. Many investors and traders participate in this group of stocks via the iShares PHLX Semiconductor ETF (NASDAQ:SOXX) or the Vaneck Semiconductors ETF (NYSEARCA:SMH). For these ETFs, the month of May has been a tough ride, too. And June may not necessarily be smooth sailing either.Sentiment around the chipmakers is down and many analysts are less than enthusiastic about the immediate future of this segment. Even before the renewed trade tensions began in early May, Wall Street was already warning about slack demand over the coming quarters as well as a serious downturn in the industry. Could these chip stocks have reached their 2019 highs in the eyes of investors?Shares of semiconductor companies usually act as a bellwether among technology stocks. Therefore, unless the semis stabilize as a group, I do not expect Advanced Micro Devices stock to make new highs any time soon. Short-Term Technical Charts and AMD StockAdvanced Micro Devices is a momentum stock. Therefore, its price volatility is high. On a given day, it is usually a battleground between long-term investors and short-term traders.Since May 6, Advanced Micro Devices stock has been especially volatile on a daily basis. It has traded within a wide range, moving between the high and mid-$20's. AMD stock is currently trading in the middle of this range.In other words, AMD stock price has been consolidating lately. And it is finding support form its 50-day moving average.I believe the stock market will continue to be volatile and weak in June, too. Therefore, sizeable daily swings in AMD stock are likely to continue.In the coming weeks, I expect the AMD stock price to break out of this range. Although the new leg could be either up or down, I expect AMD shares to decline first toward $25 and then further toward $20-$22.5.At that point, I'd expect Advanced Micro Devices stock to start to build a base and then trade sideways, possibly until its next earnings report in late July.However, in case of a swift end to trade tensions, AMD stock would likely rally toward $29, where it would face major resistance. Short Interest and AMD StockAs part of short-term sentiment analysis, investors may also monitor the extent to which stocks are shorted. In other words, they follow the ratio of short positions that are open and yet to be covered. Two investors may look at the same data and have differing views. I tend to use the number as a contrarian indicator.For example, if more than 20% of a stock's float (available shares) are shorted, then even a small rise in its price could actually become a powerful short squeeze and propel the stock much higher.At this point, 11.1% of AMD's shares are shorted. So while there are plenty of traders who have shorted AMD stock, not enough shares of Advanced Micro Devices are being shorted to set the stage for a massive short-squeeze rally.On the other hand, the numbers for Nvidia and Intel are 2.3% and 1.1% respectively. In other words, these two stocks have lost over 25% of their market caps over the past few weeks on very little short-selling. Therefore, the current level of short-selling in AMD stock may put selling pressure on the shares. The Bottom Line on AMD StockAs new frontiers in technology, such as the internet of things (IoT), artificial intelligence (AI), autonomous driving, and 5G, are developed, I am bullish on the future of Advanced Micro Devices, which has been quite successful in recent years.Although I'd not bet against AMD stock long-term, the company is likely to face headwinds in the coming months, including a global decline in PC sales as well as in the chip sector.We may also be some time away from a trade agreement with China, which may increase the expected level of slowdown in the Chinese economy, and AMD stock cannot be completely immune to these macro trends.Therefore those investors who plan to long Advanced Micro Devices may want to consider any fall towards the $22.5-$20 range a good opportunity to buy into the shares.As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Sell Impacted by the Mexican Tariffs * 6 Big Dividend Stocks to Buy as Yields Plunge * The 10 Biggest Announcements From Apple WWDC 2019 Compare Brokers The post AMD Stock Looks as If It Finally Is Ready to Cool off a Bit appeared first on InvestorPlace.
Today we've highlighted 10 stocks that are currently trading for under $20 per share. All of these stocks sport a Zacks Rank 2 (Buy) or better at the moment...
With HPE set to report its quarterly financial results on Thursday, let's see if investors should consider buying HP Enterprise stock.
"I would be lying to you if I said that this was not an emotionally difficult decision," Cray CEO Peter Ungaro wrote in a letter to employees after the company announced plans to be acquired by HPE for $1.3 billion.
Stocks that moved substantially or traded heavily on Friday: Deere & Co., down $11.17 to $134.82 The farm equipment maker's quarterly profit missed expectations amid weakness in the agriculture sector. ...
CRAY stock is soaring on Friday following news that the company is being acquired by Hewlett Packard Enterprise (NYSE:HPE).Source: Cray The deal will have Hewlett Packard Enterprise acquiring Cray (NASDAQ:CRAY) for a total of $1.30 billion. This will have the company purchasing shares of CRAY stock for $35 each. The company will be paying for the stock with cash.The price of $35 per share is a pretty premium for investors in CRAY stock. The company was trading at $29.81 when the markets closed on Thursday. This has the offer from Hewlett Packard Enterprise sitting at roughly 17% above that price.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHewlett Packard Enterprise says that it is expecting the deal to be accretive to its non-GAAP operating profit and earnings in the first full year following the close. It is also expecting one-time integration costs to be absorbed into its free cash flow outlook of between $1.90 billion and $2.10 billion for fiscal 2020."This is an amazing opportunity to bring together Cray's leading-edge technology and HPE's wide reach and deep product portfolio, providing customers of all sizes with integrated solutions and unique supercomputing technology to address the full spectrum of their data-intensive needs," Peter Ungaro, President and CEO of Cray, said in a statement. * 6 Chinese Stocks That Could Pop On a Trade Deal Hewlett Packard Enterprise and Cray are expecting the deal to close during HPE's first fiscal quarter of 2020. The deal will first need to complete customary closing conditions and get approval from regulators and shareholders before this can happen.CRAY stock was up 19% and HPE stock was up 1% as of Friday afternoon. CRAY stock is also up 37% and HPE is up 7% since the start of the year. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy that Lost 10% Last Week * Top 7 Dow Jones Stocks of 2019 -- So Far * 5 Service Stocks That Can Win the Trade War -- According to Goldman Sachs As of this writing, William White did not hold a position in any of the aforementioned securities.Compare Brokers The post CRAY Stock Soars on Acquisition by Hewlett Packard Enterprise appeared first on InvestorPlace.
The $35 per share value represents a premium of 17.4% to Cray's last close. HPE said it expects the deal to increase its footprint in federal business and academia, and sell supercomputing products to its commercial clients. The deal, expected to close by the first quarter of HPE's fiscal year 2020, will add to its adjusted operating profit in the first full year after closing.
In a statement, HPE confirmed the companies have entered into a definitive agreement under which HPE will acquire Cray for $35 a share in cash. As part of the transaction, HPE expects to incur one-time integration costs that will be absorbed within HPE's 2020 fiscal-year free cash flow outlook of $1.9 billion to $2.1 billion, which remains unchanged.
Hewlett Packard (HPE), in order to strengthen foothold in HPC and enterprise class server and storage markets, is contemplating an agreement to acquire Cray.
Hewlett-Packard Enterprise Co. is buying supercomputer designer Cray Inc. for $1.3 billion in cash, the two companies said today. Shares of Seattle-based Cray jumped nearly 16 percent at the opening bell on the news. “Answers to some of society’s most pressing challenges are buried in massive amounts of data,” HPE CEO Antonio Neri said in a statement.
Cray investors will get $35 a share in cash, the companies said in a statement on Friday, confirming an earlier Bloomberg report. Cray jumped 17% to $34.89 at 9:49 a.m. in New York trading after earlier touching $34.96, the biggest intraday gain in a year. Palo Alto-based HP Enterprise gained about 2% to $14.82.
Hewlett Packard Enterprise Co (NYSE: HPE) will acquire supercomputer manufacturer Cray Inc (NASDAQ: CRAY) in a transaction valued at approximately $1.3 billion. "Only by processing and analyzing this data will we be able to unlock the answers to critical challenges across medicine, climate change, space and more. Cray is a global technology leader in supercomputing and shares our deep commitment to innovation," Antonio Neri, CEO of HPE said in the press release.
Supercomputer maker Cray Inc. announced Friday an agreement to be acquired by Hewlett Packard Enterprise Co. in a deal valued at $1.3 billion. Under terms of the deal, HPE will pay $35 per share in cash for each Cray share outstanding, representing a 17.4% premium to Thursday's closing price of $29.81. Cray's stock had soared 16.6% in premarket trade prior to a trading halt after Bloomberg reported late Thursday that the companies held buyout talks. HPE it expects the deal, which is expected to close by the quarter ending January 2020, should add to adjusted earnings in the first full year, with one-time integration costs absorbed within its fiscal 2020 free cash flow outlook of $1.9 billion to $2.1 billion, which remains unchanged. "Answers to some of society's most pressing challenges are buried in massive amounts of data," said HPE Chief Executive Antonio Neri. "Only by processing and analyzing this data will we be able to unlock the answers to critical challenges across medicine, climate change, space and more." Cray's stock is halted until 8:15 Eastern, while HPE shares slipped 0.2%. Year to date through Thursday, Cray's stock has run up 38%, HPE shares have gained 10% and the S&P 500 has advanced 15%.
Cray stock jumped more than 16%, or $4.96, to $34.77 in premarket trading on the Nasdaq Stock market after Bloomberg reported that HPE may announce a deal to purchase the Seattle-based company as soon as Friday. Shares in Cray have risen about 38% this year and closed at $29.81 on Thursday, giving the Seattle-based company a $1.23 billion valuation.
Shares of Cray Inc. soared 17% toward a three-year high in premarket trade Friday, prior to a trading halt, after a Bloomberg report that Hewlett Packard Enterprise Co. was in advanced talks to buy the supercomputer maker. Citing people with knowledge of the matter, the report out late Thursday said a deal could be announced as soon as this week. Cray's market capitalization at Thursday's closing price was $1.23 billion. HP's stock was still inactive ahead of the open. Cray's stock has soared 38% year to date through Thursday, while the S&P 500 has gained 15%.
The deal will help HPE take on rival IBM (NYSE:IBM). The move will also help the market consolidate, Ray Wang, founder and principal analyst at Constellation Research told Techcrunch.
Hewlett Packard Enterprise Co is in advanced discussions to buy Cray Inc, a supercomputer manufacturer, Bloomberg reported on Thursday, citing people with knowledge of the matter. A deal could be announced ...
Stocks tumbled yesterday after U.S. and Chinese negotiators ended talks without a trade deal. Understandably many investors are beginning to get nervous as to where we may be headed next.Source: Shutterstock Therefore, today I'd like to discuss the short and long-term outlook of Advanced Micro Devices (NASDAQ:AMD) stock, one of the darlings of Wall Street in 2019. * 6 Trade War Stocks With a Lot of Risk Year-to-date, the chip giant is up 42%. Long term, I believe AND stock price is going to rise much more.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, in the short-term, AND stock is likely to be choppy and somewhat of a mixed bag. A couple of negative macro economic headlines in the next few weeks may drive many stocks, including AMD stock, down.AMD stock, which is up big on the year, is not one of the safer names in the market. Additionally, the chip sector is being hurt by rising inventories and trade war concerns. In other words, I would encourage investors to wait for several weeks before buying AMD stock. By then, the sector's outlook may have improved and buyers could be back in control. The Fundamentals of AMD Stock Are StrongOn Apr. 30, Advanced Micro Devices reported its first-quarter earnings. Its profit of 6 cents per share came in slightly ahead of analysts' consensus outlook.The company reports the results of two main segments: * Computing and Graphics segment (its revenue tumbled 26% year-over-year to $831 million) * Enterprise, Embedded and Semi-Custom segment (its revenue fell 17% YoY to $441 million) In the current quarter, AMD management expects its revenue to be about $1.52 billion, a decrease of approximately 13% YOY. Overall many analysts saw the Q1 earnings report as a sign that AMD is executing well on its strategic plans.On May 7, the U.S. Department of Energy announced that AMD and Cray (NASDAQ:CRAY) had been awarded a $600 million contract to develop the 'Frontier' supercomputer. Expected to become the world's fastest computer, Frontier will perform advanced calculations in areas like nuclear and climate research.Graphics processing units (GPUs) accelerate central processing units (CPUs), boosting the performance of video and graphics and improving computers' overall performance. The supercomputer will use AMD's EPYC CPUs, each of which will be connected to four of the company's Radeon Instinct GPUs.This important deal confirms that AMD is now a recognized industry leader that can rival Nvidia (NASDAQ:NVDA) and Intel (NASDAQ:INTC). AMD has a roadmap to compete with Intel's dominant CPUs and Nvidia in the graphics-card space.As new frontiers in technology, such as the internet of things (IoT), artificial intelligence (AI), autonomous driving, and 5G, are developed, I am bullish on the future of Advanced Micro Devices, which has been quite successful in recent years. As a result, I am also upbeat on the long-term outlook of AMD stockYet, recent positive news from AMD's earnings and its clients have now been factored into AMD stock price. Until AMD's next earnings announcement, Advanced Micro Devices stock is likely to become a battleground between long-term investors and short-term traders. Short-Term Headwinds for AMD StockWall Street has recently been debating whether the semiconductor industry, which is highly competitive and cyclical, has entered a prolonged downturn. Could these chip stocks have reached their 2019 highs in the eyes of investors?For long-term investors, such gyrations in the sector are nothing new. Yet, between now and July when many chip companies will announce their earnings again, any potential weak guidance that may be issued could lead investors to become bearish on semiconductor stocks.Wall Street is nervous that chip companies' upcoming results may be mixed. For example, analysts follow AMD's gross margin levels closely. The company expects its Q2 gross margin to be 41%, the highest in eight years. Therefore, any unexpected dip in the margin could easily push AMD stock price south.China consumes more than 50% of all semiconductors made worldwide. On the other hand, U.S. chip companies lead the world with a combined global market share of nearly 50%. Furthermore, many technology companies either have manufacturing plants in China or use Chinese companies in their supply chains. Therefore, Wall Street fears that U.S. chip makers will be among the largest losers of the trade war. Are Traders Shorting AMD Stock?As part of my short-term analysis, I also monitor the extent to which stocks are shorted. I tend to use that data as a contrarian indicator.For example, if over 20% of a stock's shares are shorted, then even a small rise in its price could actually become a powerful short squeeze and propel the stock much higher. At this point, 11.2% of AMD's shares are shorted. So while there are plenty of traders who have shorted AMD stock, not enough shares of Advanced Micro Devices stock are being shorted to set the sage for a massive short-squeeze rally. What Are the Short-Term Technical Charts Saying About AMD Stock?As a result of the impressive run-up in AMD stock price in 2019, its short-term technical indicators had become somewhat "overbought," until last week.Since May 6, however, Advanced Micro Devices stock, like many other companies in the broader market, has been negatively impacted by the ramping rhetoric of the U.S.-China trade war.AMD stock staged a strong comeback on May 10, only to drop again yesterday. I believe the stock market will continue to be volatile and weak for the rest of May. Because AMD stock has been a big momentum leader in recent years, sizable daily swings of AMD stock price are likely to occur.In the coming weeks, I expect AMD stock price to decline further toward $25-$26 or even $22-$23. At that point, I'd expect Advanced Micro Devices stock to start to stabilize and then trade sideways until its next earnings report in late July. So Should Investors Buy AMD Stock in May?In the coming weeks, I would buy AMD stock for $25 or less.If you already own Advanced Micro Devices stock, you might want to stay the course and hold onto your position. That said, if you are worried about short-term profit taking, then within the parameters of your portfolio allocation and risk/return profile, you may consider placing a stop loss at about 3%-5% below the current price point, to protect the profits you've already made from AMD stock.If you are an experienced investor in the options market, you may also consider using a covered call strategy with approximately a two-month time horizon. In that case, you may, for example, buy 100 shares of AMD at a limit price of $26.25 and, at the same time, sell an AMD Jul 19 $27 call option, which currently trades at $1.97.The $27 option offers some downside protection in case of volatility and a decline of AMD stock price. This call option would stop trading on July 19 and expire on July 20. Because Advanced Micro Devices is expected to report its earnings on July 23, you would have enough time to reassess market conditions and your expectations of AMD stock after this call option expires.I would not advocate buying AMD stock on weakness in the near-term. Yet, I find AMD stock to be a buy candidate as its price declines toward $25. By the end of 2020, I'd expect the shares to reach $31-$32. Despite the recent decline of AMD stock price, Advanced Micro Devices is still one of the year's biggest winners so far.As of this writing, the author did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks to Buy as the Trade War Reignites * 10 Stocks That Could Squeeze Short Sellers, Including CGC * 5 Tech Stocks Getting Crushed Compare Brokers The post When Will Advanced Micro Devices Stock Rise Above $30? appeared first on InvestorPlace.