A leading analyst has described chip-maker AMD as being “un-investable” after the company reported its disastrous third quarter results.
According to Ars Technica, the company announced a net loss of $US157 million, with a loss per share of $US0.21 and an operating loss of $US131 million, along with the announcement of 1,800 job cuts, representing 15% of the company’s global workforce.
The news led to Bernstein Research’s Stacy Rasgon to describe the company as “un-investable” in a financial analysis report.
“Our last tiny bit of conviction is, at long last, depleted,”Rasgon says.
“We have no further confidence that any aspect of our prior structural thesis (margin accretion, cash flow, and balance sheet deleveraging) will play out in the foreseeable future.”
“Frankly, the most common adjective that comes up when we discuss the company with clients is, simply, ‘un-investable’.”