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Trader's Diary

Economic calendar

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Definición de términos:
Ganancias

Earnings

refer to the profits or net income generated by a company during a specific period.

  • Earnings are a measure of a company's financial performance and are often reported on a quarterly or annual basis.

  • Positive earnings indicate that a company has made a profit, while negative earnings indicate a loss.

  • Earnings can be influenced by various factors, such as revenue, expenses, taxes, and other financial activities.

Code

The code is a unique identifier assigned to a company's stock by the stock exchange where it is listed. It is used to identify the stock in trading and other financial transactions.

Actual

Actual refers to the real or current value or result of something. In the context of IPOs, actual can refer to the actual price or number of shares sold in the IPO, as opposed to the estimated price or number of shares.

Estimate

Estimate refers to a prediction or approximation of something, such as the expected price or number of shares in an IPO. Estimates are often made by investment banks and analysts based on market demand and other factors.

Difference

Difference refers to the numerical or percentage variance between two values. In the context of IPOs, difference can refer to the variance between the estimated and actual price or number of shares sold in the IPO.

Percent

Percent refers to a fraction of 100, often used to express a proportion or rate. In the context of IPOs, percent can be used to express the difference between the estimated and actual price or number of shares sold as a percentage of the estimated value.

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OPV

IPOs (Initial Public Offerings):

An IPO occurs when a private company sells its stock to the public for the first time to raise capital or money.

The money raised from an IPO can be used for various purposes, such as paying down debt, investing in the company's long-term health, research and development, expanding into new product lines, or purchasing fixed assets.

During the IPO process, the equity shares of private investors

convert into publicly owned shares of the new entity, and early investors may sell their stock once the company's shares begin trading.

The chief benefit of an IPO is to help the company raise money and gain access to the capital markets, allowing for expansion and increasing credibility.

Code

The code is a unique identifier assigned to a company's stock by the stock exchange where it is listed. It is used to identify the stock in trading and other financial transactions.

Name

The name is the official name of the company whose shares are being offered in the IPO.

Exchange

The exchange is the stock exchange where the company's shares are listed and traded. Examples of stock exchanges include the New York Stock Exchange (NYSE) and the Nasdaq.

Currency

The currency is the type of currency in which the company's shares are priced and traded. This can vary depending on the country and stock exchange where the company is listed.

Start date

The start date is the date on which the company's shares begin trading on the stock exchange after the IPO.

Offer price

The offer price is the price at which the company's shares are initially offered to the public in the IPO. This price is set by the company and its underwriters based on market demand and other factors.

Shares

Shares refer to the units of ownership in the company that are being offered to the public in the IPO. These shares can be bought and sold on the stock exchange after the IPO.

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Splits

Splits (Stock Splits):

A stock split occurs when a company increases the number of its outstanding shares of stock to boost the stock's liquidity.

In a stock split, the number of shares outstanding increases by a specific multiple, but the total dollar value of all shares remains the same.

Companies often choose to split their stock to lower its trading price to a more comfortable range for most investors and increase the liquidity of trading in its shares.

For example, if a company decides to split its stock 2-for-1, the number of shares outstanding would double, while the share price would be halved.

Code

The code is a unique identifier assigned to a company's stock by the stock exchange where it is listed. It is used to identify the stock in trading and other financial transactions.

Split date

The split date refers to the date on which the stock split takes effect. It is the date when the new shares resulting from the split are distributed to existing shareholders. Optionable

Optionable refers to whether the stock is eligible to be used as an underlying asset for options contracts. If a stock is optionable, it means that options can be traded on that stock.

Old shares

Old shares refer to the existing shares of a company before a stock split takes place. These are the shares that will be exchanged for the new shares resulting from the split.

New shares

New shares are the additional shares that are issued to existing shareholders as a result of a stock split. The number of new shares is determined by the split ratio, such as 2-for-1 or 3-for-2, where shareholders receive a certain number of new shares for each old share they own.

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AMD Slips After Earnings Report

Fecha: 5.2.2025

For us investors following the semiconductor sector, today was very significant. AMD announced its results for the fourth quarter of 2024, beating expectations in terms of both sales and profit. Nevertheless, the shares fell by more than 9% after the end of regular trading hours.* This decline subsequently raised questions that I also dealt with. Is this an overreaction of the market, or is it a legitimate warning sign?

Results for the fourth quarter of 2024

AMD posted earnings per share (EPS) of $1.09 on record revenue of $7.7 billion, slightly above the Wall Street consensus.* Data centers, as the largest division of the company, brought in net revenues of $3.9 billion, which represents a year-on-year increase of 69%. The client segment also recorded a 58% year-over-year increase, namely $2.3 billion in net revenue. The gaming segment also grew above expectations, reaching $563 million instead of the forecast of $487 million.

Forecast for the first quarter of 2025

A bigger surprise was the forecast for the first quarter of 2025. AMD expects revenue of about $7.1 billion, while Wall Street was counting on a value of $7.0 billion. This optimistic estimate should theoretically support the growth of stocks, but the market reaction indicates more concerns, probably related to macroeconomic factors and geopolitics. [1]

Impact of Chinese tariffs on the technology sector

Chinese tariffs are also a significant factor affecting the technology sector. President Trump has imposed a 10% tariff on goods made in China. While high-performance chips made in Taiwan will remain unaffected, products such as servers and PCs made in China may be affected. If the prices of these products rise, demand for them may weaken, which could also indirectly affect the demand for AMD processors. [2]

Competition in the AI chip market

In addition, there is competitive pressure. Nvidia is up 80%1 in the last 12 months, while AMD has lost 33%2.* Although Intel was even worse off with a 54%3 drop, it turns out that investor money is pouring mainly into Nvidia, which dominates the field of AI chips.* AMD is trying to get ahead in this area, but it will need a more aggressive strategy if it wants to compete effectively.

Investment view

So, what does this mean for us investors? AMD has a good foundation for long-term growth, especially if they manage to gain a better position in AI. However, short-term risks, such as geopolitics and an economic slowdown, can cause volatility. If I look at the long term, any decline in AMD shares can represent an investment opportunity. [3]

* Past performance is no guarantee of future results

[1], [2], [3] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or based on the current economic environment which is subject to change. Such statements are not guaranteeing of future performance. They involve risks and other uncertainties which are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements.

1Nvidia stock price performance over the past five years: https://tradingeconomics.com/nvda:us

2AMD stock price performance over the past five years: https://tradingeconomics.com/amd:us

3Intel stock price performance over the past five years: https://tradingeconomics.com/intc:us

Resources:

https://ir.amd.com/news-events/press-releases/detail/1236/amd-reports-fourth-quarter-and-full-year-2024-financial

https://d1io3yog0oux5.cloudfront.net/_30039d64b6a0a99791ef3ab5a00b8f5a/amd/db/778/6994/file/AMD+Q4%2724+Earnings+Slides+.pdf

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