S.A. Team

About the Author S.A. Team

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Tuesday’s Analyst Insights: Advanced Micro Devices, Inc. (AMD), Twitter Inc (TWTR)

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares are falling as much as 20%, logging their worst day in nearly 12 years, after the chip giant’s gross margin guidance failed to meet Wall Street’s expectations.

Susquehanna analyst Christopher Rolland commented, “While some are likely to attribute the lower GMs to Ryzen cost/ASP problems, we think the biggest culprit is likely the Street (which includes us), which got the mix wrong by overestimating the Ryzen ramp and underestimating console APU seasonality. We note that this is just inning one in their gross margin ramp as Naples (server), Vega (highend GPU) and Raven’s Ridge (laptop APU) have yet to launch and benefit company GMs. Additionally, we look forward to the company’s upcoming analyst day and new roadmap release for more details on products that could drive GM expansion well into 2018. That said, we think much (if not all) of this good news is already embedded in shares. Therefore, we remain on the sidelines based on valuation.”

As such, the analyst reiterates a Neutral rating on Advanced Micro Devices shares, with a price target of $12, which implies an upside of 8% from current levels.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Christopher Rolland has a yearly average return of 9.1% and a 60% success rate. Rolland has a -1.2% average return when recommending AMD, and is ranked #467 out of 4569 analysts.

 

Twitter Inc (NYSE:TWTR) shares are rising nearly 5% in Tuesday’s trading session, after the micro-blogging platform announced 14 new or expanded content deals (across sports, news, and entertainment) at its debut Digital Content NewFronts presentation in NYC last night, emphasizing the importance of live video for the platform going forward.

While Wall Street cheers the news, Cantor analyst Kip Paulson stated, “While the new slate should help offset the disappearance of Thursday night NFL games and political content & ad spend, we believe it’s still too early to turn positive on the live-streaming strategy, particularly given the backdrop of sluggish MAU growth and declines in traditional promoted Tweets.”

People often ask, is it worth listening to this analyst? According to TipRanks, Paulson has a yearly average return of 13.5% and a solid 83% success rate. Paulson has a 32.4% average return when recommending TWTR, and is ranked #1411 out of 4569 analysts.

Out of the 35 analysts polled by TipRanks (in the past 3 months), 4 rate Twitter stock a Buy, 20 rate the stock a Hold and 11 recommend to Sell. With a downside potential of 21%, the stock’s consensus target price stands at $14.62.