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well folks is time to kick it old school welcome to world fantastic day sorry for not uploading a lot recently I've just been incredibly busy with my job outside of YouTube but I've made some changes to my schedule and I've moved some things around and so now I think that I'll have a lot more free time to dedicate to YouTube and to put more content out there and so we'll definitely be doing some stock market daily videos hopefully some individual stock analysis videos and some other kind of you know financial and just money related videos as well maybe some introductory videos and things like that so definitely a lot more content coming and I also want to reply to people's comments and things like that and make videos on people's comments so there's definitely a lot of content coming so hopefully you will like it but having said that today we're gonna be talking about AMD and the reason why is because AMD is actually my second biggest stock and so if you're new to the channel you may not know this but a lot of the longtime viewers know that AMD has been my second biggest stock for a long time and my number one largest stock is Nintendo and it's been doing incredibly well and it's by far my biggest stock but AMD is definitely my second biggest stock and definitely is a big part of my portfolio and it's been struggling like crazy I mean it's been doing really bad and so I've been receiving a lot of comments asking me what I think about it how do I feel about AMD struggling so much and I still even invested in it and so the answer is yes I'm still invested in it still my second biggest stock but we're going to look a little bit at the stock and see what happens see why it's kind of struggling I'm not gonna get too detailed because then it would be a really long video if I went into every single product and things like that it'd be a super long video I'm sure you guys will leave comments and give me all the little details that I'm leaving out in the video but with that being said let's go ahead and dive right into this so going into a andis quarter 3 earnings Bears were saying that the stock was overvalued and that's certainly been a common theme right with AMD we've seen it a lot everybody's saying that it's overvalued and overpriced but to be honest I don't necessarily disagree with them I just feel that AMD could still deliver even if they're overvalued or even if expectations were a bit too high but that's definitely a fear that I had that investors in analysts were going to expect too much and then AMD would not be able to deliver well it turns out that AMD was to a certain degree able to deliver it because their numbers in their quarterly earnings were actually not that bad at all they had beats on gross margins revenue and profits margin expansion grew to 35% they had earnings profitability and they grew their revenue by 26% year-on-year net income was also up four hundred seventy seven million dollars a year over year so why did it drop well I've heard many different reasons and I'm not sure which ones I believe the most but certainly a couple of bearish arguments had to do with epic sales taking too long and gross margins only being good because of IP related revenue which by the way Lisa sue and AMD were a little bit mysterious about in their earnings call and it sort of felt like they didn't really want to address that topic too much I believe it's also received a few downgrades from analysts I don't remember off the top of my head which ones were the most recent but I do remember AMD having some issues with Goldman Sachs Barclays Morgan Stanley all of those come to mind I'm pretty sure that they've all downgraded AMD in the past and that's just to name a few really so on top of all of that competitors like Intel and NVIDIA are stepping up the game and they have been and they're adding a lot of pressure to AMD to keep up and to compete with them and we also saw that short interest has been extremely high right so we know that you know that can definitely have an impact but certainly if the stock does better later right if any good news comes out in the stock does well then you could definitely see a short squeeze and so it could actually turn into a positive but at the moment the fact that there's so much shorting going on an AMD stock it's technically a negative right now but it could potentially be a positive if you kind of get that short squeeze on on any like really good news right now to be honest I don't think that the whole epic argument is really a fair argument we know that it can take a long time to get the server segment moving and AMD does have partnerships with JD comm Tencent Baidu Microsoft and even Amazon who have all stated that they'll be using epics so I don't think it's really a great excuse for the Sox to be hurting as badly as it is but I do think that the impatience mixed with all the other little things can definitely add up and can obviously hurt a stock especially when that stock is is named AMD which is up over what like 300% in the last couple years right so any kind of bad news is definitely going to hurt a stock like AMD now is the stock overvalued yeah it probably is but at these prices right now we've seen it at like $10 I think have you even seen a dip below $10 into the $9 range and it could certainly go lower I'm not saying that it's not going to but at these prices I think with all of AMD's potential I mean I just think why not I actually picked up more stock to be honest but you know and that's just my choice I'm not telling you guys to do that but I'm just saying you know that's kind of how I see it now I know that analysts used to predict four point ten billion dollars in revenue which is now at five point two five and some analysts are actually saying that it could reach six billion next year with gap profitability one report I was reading actually mentioned that AMD is trading at around one point eight eight times next year's projected sales while Intel trades at three point two six and NVIDIA trades at eleven point seven so talking about AMD being over price I mean it's actually kind of cheap when you look at those numbers now obviously I did kind of pull those numbers out if you change the numbers or if you look at other you know other measurements then you could argue that the other ones are cheaper and you know we could go back and forth all day but that's just kind of one example by the way I listed all of the reports that I looked at in the description below so if you want to look at these reports and you want to look at more numbers and more figures and base your opinion off of that make sure to click those links you can look at all those reports it's not like affiliate links or anything like that it's just information that's out there now having said that I'm not saying that those other companies like Nvidia until I'm not saying that they don't deserve those high valuations because you know they are valued pretty high but I'm not saying that they don't deserve that I'm just saying that with all the talk about AMD being overvalued all the time and again while I don't necessarily disagree with those arguments I just personally don't care all that much I think that AMD is going to bounce back and I'm sure that many of the partnerships with the companies that I listed earlier working with epic I'm sure that they are going to be small deals with epic to sort of test the waters at first but if they're happy which I think that they will be with the performance of epic then I expect those orders to become much larger and larger and only help aim D in 2018 and beyond and we know that around 10 years ago AMD's Opteron offering helped AMD gain around 25 percent of the market and then lost it over the next few few years right but AMD's roadmap as of right now and as far as products go is much more complete and I think that the higher profit margins which is another reason why the stock is suffering right now will come over time and so you know maybe not necessarily 2018 but you know maybe at the end of 2018 and maybe in the next couple years I really see it kind of ramping up and named D doing a lot better and so I'm looking forward to s and 2 and 3 and all the revenue that will be generated from rising semi-custom Solutions Polaris and of course epic so again I have to say that I'm thinking long term with AMD I'm investing with money that I don't really need and so I have no reason to panic or sell right now or anytime soon and so we'll just have to wait and see what happens maybe I'm right maybe I'm wrong we'll see but that's what I love about stocks I love being the underdog I was investing in Nintendo when nobody else would touch it and right now it's my biggest stock and I think it's actually tripled ever since I bought it so so I'm fine I'll be patient I'll wait and maybe the stock will continue to drop but that's ok I'm thinking long term anyway and it's my choice to make and not really anybody elses right so we'll see what happens with that with that being said I want to say thank you so much for watching like I said more videos are coming if you love AMD leave a comment if you hate AMD leave a comment if you're new please subscribe if you want more videos like this then hit the like button and if you watch the video all the way through then I'm going to say that you are Nintendo because while AMD was my second biggest stock and struggling you guys kept me afloat and so I appreciate that and with that I want to say that I hope you all have a wonderful beautiful day and that you take care bye
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