AMD v. Intel stock price.

[clutchy]

AMD's stock price is now almost twice what Intel's is. Who knows what time it is? time to buy Intel stock!!1 I honestly never thought i'd see this day...

my portfolio from highschool is now worth $300,000 from $100,000 in '99

http://finance.yahoo.com/q?s=amd
http://finance.yahoo.com/q?s=intc

[LegendKiller]

Absolute prices on stocks do not mean anything.

Market cap for AMD...16.49B
Market cap for Intel...124.69B


Number of shares outstanding for Intel...~6,028,914,031
Number of shares outstanding for AMD...~403,968,642

Volume of Intel 48,363,200
Volume of AMD 13,891,300
If the number of stocks decreases through buybacks, then each share's proportion of remaining common equity increases, thus the stock price increases.

Relative valuation of stocks based upon absolute prices mean nothing at all.

Compare Intel EPS to AMD..... 1.402 vs 0.38
Or Intel P/E to AMD ............14.75 vs 108.85


What does that mean? Despite more 15x as many shares outstanding, Intel still has 4x+ the amount of revenue per share as AMD.

Furthermore, you are paying 7.37 times as much for every dollar of AMD earnings when compared to Intel.


So, in the end, AMD stock, with a P/E ratio of 108.85 has a P/E Ratio greater than most .bomb tech stocks during 99/00 era. It has a higher P/E ratio than Google. It has a P/E ratio almost 8x as high as the long-range historical rate.

On the other hand, AMD could have had a bad period of earnings and their P/E ratio is overstated because of this. Their stock price is justified by higher future earnings, which will then decrease the P/E ratio to normal levels.

This could also mean that Intel is in for a period of lower earnings and the lower P/E ratio and stock price is justified.

To determine more you would have to look at earnings targets, future prospects, and long-run growth rates for both companies, in addition to analyst targets and your own fundamental analysis.

[Cheesypuff]

AMD's stock price is now almost twice what Intel's is. Who knows what time it is? time to buy Intel stock!!1 I honestly never thought i'd see this day...

my portfolio from highschool is now worth $300,000 from $100,000 in '99

http://finance.yahoo.com/q?s=amd
http://finance.yahoo.com/q?s=intc


personal money management? I took that class also and bought amd stock! I'm worth a buttload off that also!