Weekly Earnings Insights: 11.6-11.10

AMD releases a 23Q3 earnings report and the stock price fluctuates; overall performance exceeds expectations, showing signs of recovery. However, the main reason for this is the recovery of the traditional PC business. In contrast, other core businesses such as AI and data centers did not meet expected growth, leading to low market sentiment.

AMD's Q3 2023 performance Is influenced by: 1) Ongoing chip supply chain challenges, impacting PC and gaming segments despite some mitigation efforts. 2) Strong data center market growth with EPYC server processors and Radeon Instinct GPUs. 3) A stabilizing global PC market with Ryzen 6000 series processors on the horizon.

The company has been trying to pull out of its longest sales slowdown in decades. It just reported its fourth straight revenue decline, matching a streak it suffered in 2001, as the company struggles with a sluggish computer market and shaky demand in China.

The results suggest that Apple is facing a bigger deceleration in China than feared. A new phone from Huawei Technologies Co. is providing fresh competition.

even in a scenario where the Federal Reserve did suddenly start cutting interest rates again and easing policy, I do not believe it would reverse the long-term prognosis for AMC completely. That’s because the core issue is that even if you exclude these debt interest payments, the AMC business itself is still burning significant cash on an operating basis annually.

It signals that AMC needs to make some serious adjustments to its business model and operations for any hopes of achieving consistent long-term profitability down the line. Relying on momentary hype cycles like the recent wave of Taylor Swift fans won’t be a repeatable phenomenon forever.

AMC Entertainment beat third-quarter revenue estimates on Wednesday, riding on the success of "Barbie" and "Oppenheimer" movies as volumes of theatrical releases also improved at the box office. Popular and diverse movie titles are driving moviegoers to theaters in a post-pandemic environment, with pent-up demand and high ticket prices helping theater chain operators.