Worst Day Since March for Mastercard and AMD’s Search for Competition
Overall, Mastercard has performed decently well this year despite undergoing the effects of the pandemic like everybody else. Although, after releasing their earnings report, the stock dropped heavily on Wednesday, making it the largest percentage drop the stock has seen since the beginning of March.
Mastercard’s earnings were underwhelming compared to analyst estimates. With the company’s earnings per share at just $1.60, this represents a falling out compared to last year’s data at $2.15. Still, over the last four quarters, the company has surpassed consensus Earnings Per Share estimates three times. This could just be a one-off event for the company.
AMD has announced that they will be buying FPGA chip specialist Xilink for $35 billion. The U.S. semiconductor company has been acquiring companies left and right and now with the acquisition of Xilink, AMD is now in contact with the telecoms sector.
AMD stock has been killing it over the past couple years and was the highest returning stock in 2018 and 2019. These constant acquisitions are a very smart way to take advantage of their high stock price to continue to assert their dominance in the chip industry.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.