$AMAT: RECORD RESULTS, AND THE STOCK STILL WON'T M
$AMAT is not a broken company. In its latest quarterly report the company posted record revenue, gross margins at a 25-year high near 50%, raised guidance, and a dividend increased for the ninth year straight. By every fundamental measure, business is booming on the back of AI demand. And yet the stock is down over 14% in a month, and today, on positive headlines, buyers still didn't show up. Volume has been negative five sessions running. So what gives? Two things the good news doesn't cancel. First, price. The stock trades over 49 times earnings, and analysts at Yahoo Finance flag it as sitting above fair value. A great company at a stretched price is not the same as a great trade. Second, the tide. Money is rotating out of semiconductors as a group right now, and even the best name in a sector being sold gets carried out with the rest. This is the lesson I keep coming back to. A stock is not its company. The business can break records while the stock does nothing, because the stock also has to answer for its price and its sector. My scanner reads all of that at once, and today it says the same thing the tape does: leave it alone. It even marks the level, near 552, where the math would turn interesting again. Great company. Wrong moment. Those two things live side by side more often than people think. Not investment advice. Do your own research. 🐝
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3 Comments
Martin McClellan@star87 · 16d
Let it be, eventually the stock price will follow the trend and the great results by the company. The stock market is a voter machine.
Vlad @the_syndicate · 9d
Buy the dip, I’d say
Richard Jones@gunny56 · 15d
Too late or too early
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