3 Tech Stocks That Crashed This Week


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AMD, NQ Mobile, and Maxwell Technologies plunged this week. Only one of them has bounced back, so far. Look for cameos by Tesla Motors and Intel.

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3 Tech Stocks That Crashed This Week

  1. 1. 3 Tech Stocks That Crashed This Week
  2. 2. These 3 tech stocks fell this week Source: Wikimedia Commons.
  3. 3. From June 23 to June 27: • 55% of tech stocks with more than $300 million market caps declined this week. • Advanced Micro Devices, NQ Mobile, and Maxwell Technologies fell further than most. • Their weekly declines ranged from reversible (AMD dropped, then bounced back) to drastic (NQ Mobile’s never-ending scandal slashed another 16% off the share price).
  4. 4. Advanced Micro Devices plunged on Monday morning, then immediately started climbing back. A final push on Thursday erased the week’s bad memories.
  5. 5. “Market Underperform” • The microchip designer was downgraded by analyst firm Pacific Crest, triggering Monday’s drastic drop. • Analyst Michael McConnell argued that AMD is tightly bound to consumer PC systems. • Thus, the corporate PC rebound reported by Intel and others should not help AMD at all. • The PC market is expected to shrink by 6% overall in 2014, with nearly all of this decline falling in the consumer segment.
  6. 6. Help from unexpected quarters • AMD investors let the Pacific Crest downgrade slowly fade into the background, until Intel offered a helping hand. • On Thursday, an AMD executive revealed that Intel had asked for early access to AMD’s graphics programming platform, known as Mantle. • AMD turned Intel away, telling the larger rival to wait for version 1.0 like everybody else. • Investors loved seeing AMD in the driver’s seat for once, and the week ended on a high note.
  7. 7. Mega-sized capacitor maker Maxwell Technologies simply kept falling, all week long.
  8. 8. What’s going on? • This stock suddenly spiked in early March, when electric vehicle builder Tesla Motors was said to explore placing big capacitor orders from Maxwell. • But the rumor has not materialized, and Maxwell’s investors are finally losing hope for a big Tesla deal. • With quick power bursts and large storage capacities, Maxwell’s ultracapacitors have the potential to change the game for vehicles powered by fuel cell and battery systems. • But Tesla is sticking to its regular battery structures, at least for now.
  9. 9. Finally, China-based mobile apps and service provider NQ Mobile continued a four-month slide with another 17% haircut.
  10. 10. Ouch! • As you saw two weeks ago, NQ Mobile has been under investigation on fraud charges. • The company reportedly came up clean, but investors are still waiting for a full report of the findings. • They are also still looking for an increasingly overdue fourth-quarter report. • Uncertainty is painful. If NQ truly is innocent, management needs to publish the evidence.
  11. 11. Are you ready for the next “Next Big Thing” In mobile computing?