Millennials are not excited about AMD ahead of earnings

Thomson Reuters

  • AMD was one of the most popular stocks on stock trading app Robinhood in 2017, but millennial investors weren’t too pumped about the stock ahead of its earnings.
  • The company is currently mired in the CPU security flaw known as Spectre.
  • Watch AMD stock price trade in real time here.

AMD has been a millennial mainstay stock for a while, but the young investing crowd is starting to turn on the chipmaker in preparation for its fourth-quarter earnings report.

Investors on Robinhood, the stock trading app popular with millennials, are selling the stock about 5% more often then they are buying shares. This is a stark reversal for AMD. Last quarter, Robinhood users were buying shares 20% more than they were selling.

The company also topped the list of popular stocks on Robinhood in 2017, despite losing 3.14% for the year.

AMD has been struggling to deal with the Spectre CPU flaws that have been rocking the tech world this year. What was initially thought to be a security flaw only in Intel’s chips, is now known to affect nearly every CPU maker. AMD and software makers are working to patch the flaws, but the patches could affect performance by as much as 30%, according to some predictions.

Robinhood’s head of data science, Shrey Shahi, said the security flaws are the likely culprit behind the downtick in optimism among the app’s users.

Wall Street is cautiously optimistic ahead of earnings. Of the 28 analysts tracked by Bloomberg, 10 rate the company as a buy, 14 rate it as a hold and four rate it as a sell. Analysts are expecting AMD to post adjusted earnings of $0.04 per share on revenue of $1.402 billion.

The company is trading 1.9% higher to $12.89 on Tuesday ahead of the company’s after-the-bell report. AMD shares are up 16.97% this year, despite the security flaw issues.

Read more about the most popular stocks amount millennials here.

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