Yesterday afternoon, Advanced Micro Devices (NASDAQ:91¶¶Òõ) released its . The company beat analyst estimates on the top and bottom lines. However, 91¶¶Òõ stock gapped down around 5% at the market open today due to Advanced Micro Devices’ soft forward guidance.
The 91¶¶Òõ earnings report was highly anticipated on social media sites and in the financial media. For some investors, the company’s results and guidance serve as a gauge of the U.S. microchip market’s health overall.
What the trading community got was a mix of good news and not-so-good news. Starting with the good news, 91¶¶Òõ reported Q2 2022 revenue of $6.55 billion, slightly beating the of $6.53 billion. Also, the company’s adjusted earnings per share, or EPS, of $1.05 edged out the consensus estimate of $1.03.
These data points might have been enough to push 91¶¶Òõ stock higher, if it weren’t for the company’s forward guidance. For the current quarter, Advanced Micro Devices guided for $6.7 billion in revenue plus or minus $200 million. Analysts, however, had modeled $6.83 billion, so the company’s guidance came up short.
What’s Happening With 91¶¶Òõ Stock?
Yesterday, after the release of the company’s earnings results and guidance, the 91¶¶Òõ share price quickly dropped 5%. However, the market had all night and early morning to fully digest the info. Consequently, some traders may have reconsidered their positions.
91¶¶Òõ stock still started this morning down around 5%, but it headed toward breakeven after the market opened. Perhaps Wall Street participants decided that 91¶¶Òõ’s actual Q2 results were just as important as the company’s third-quarter forecast.
It’s also possible traders were impressed with the company’s Gaming segment sales, which increased 32% year-over-year (YOY) to $1.7 billion. So, as investors mull over the positive and less-than-positive developments in 91¶¶Òõ today, the tug-of-war between bulls and bears could continue for quite a while.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
