AMD Has More Than Tripled Off Its Low and Still Trades 20% Below Its High
The chipmaker's business keeps getting better. The argument is over which end of a wild 52-week range tells the truth.
Overview
Advanced Micro Devices (NASDAQ:AMD) is having one of those years where two opposite descriptions of the stock are both accurate. Shares trade near $465 as of this writing. That is more than triple the 52-week low of $149.22, set last fall. It is also about 20% below the 52-week high of $584.73, reached on June 30.
So which end of the range tells the truth?
Details
A buyer today is paying about three times the stock's autumn low, for a company the market valued a quarter higher less than two months ago. Whether that price is a bargain or a warning comes down to what changed between those two marks -- and the honest answer is that the business changed far less than the valuation multiple did.
Source
Originally published at www.fool.com.