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Here's a short case study:

Advanced Micro Devices close on April 19, 1985: $15.

Advanced Micro Devices close on April 19, 2007: $14.28.

From Bloomberg:

Advanced Micro Devices Inc., the second-largest maker of personal-computer processors, reported a first-quarter loss of $611 million after it lost market share to new products from Intel Corp.

The net loss was $1.11 a share, compared with a profit of $185 million, or 38 cents a share, in the same period a year earlier, the Sunnyvale, California-based company said in a statement. Sales fell 7.4 percent to $1.23 billion.

After taking market share from Intel over the past two years, Advanced Micro is now on the defensive. Intel, the biggest maker of PC processors, has introduced new products to win back customers and has more chips planned for later this year. That means the worst isn't over for Advanced Micro, said analyst Doug Freedman at American Technology Research in San Francisco.

"They're just seeing the headlight of the train. It hasn't even hit them yet," said Freedman who has a "sell" rating on the stock and says he doesn't own it. Advanced Micro is suffering because it "tried to get too big too quick."

Posted by edelfenbein at April 20, 2007 7:32 AM