Not entirely unexpected
AMD’s (NYSE: AMD) shares opened at $4.91 and were hovering around the $4.66 mark in early trading today following its triple whammy announcement at its Q2 earnings announcement late yesterday.
The shares closed at $5.30 yesterday, so this represents a 12 percent drop. AMD reported a net loss of $1.189 billion for Q2 yesterday and pinned the majority of it onto a write-down in the value of the handheld and DTV product businesses.
Consequently AMD decided to sever these businesses from the rest of the company and offer them up for sale. Oh, and it replaced its CEO – Hector Ruiz – with the former COO – Dirk Meyer.
Considering all of the above, the share price drop could have been a lot more. But the day is young.
Further reading:
AMD succession was planned two years ago
AMD CEO Hector quits - AMD announces appointment of Dirk Meyer as President and CEO of AMD
