Why Advanced Micro Devices, 2U, and Zendesk Slumped Today

Investors came into Wednesday focused on one thing: whether the Federal Reserve would go forward with an expected rate cut. The Fed did indeed make a quarter-percent reduction in its Federal Funds rate, but market participants weren't pleased to see that the central bank also signaled a reluctance to make further rate cuts in the future. Moreover, some bad news on the earnings front hurt many individual stocks. Advanced Micro Devices (NASDAQ: AMD), 2U (NASDAQ: TWOU), and Zendesk (NYSE: ZEN) were among the worst performers. Here's why they did so poorly.

Shares of Advanced Micro Devices sank 10% after the chipmaker reported its second-quarter financial results. Revenue was down 13% from year-ago levels, and net income fell more than 40% over the same period as weakness in the company's core business lines weighed on overall results. In addition, AMD said that it expects its full-year results won't be as good as previously expected, as sluggish performance in game-console chips held back high demand for its Ryzen line of processors. With significant uncertainty about the current state of the semiconductor industry, worries about a downturn could pressure AMD stock well into the future.

Image source: AMD.

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