AMD New Highs?
There are many headlines trying to attribute a reason to AMD's strength but there's only one main driver...
Earnings Are The Driver
Headlines can say what they want as to why the stock's moving today but its been a straight line since earnings were reported in late April.
Since their report April 25th the stock has been a rocket ship.
Not only did hedge funds and institutions have to rework their numbers to something closer to our earnings estimates but the shorts were totally trapped.
After they reported April 25th we wrote, "Shorts are trapped" and that we had "big stock price upside" based on our earnings estimates which were way above the Street.
As you know we were bulled up ahead of that earnings report because of our way above Street estimates (here here and here).
Sorry To Say But Only 60% Upside To Go
On May 16th we wrote "No Joke 100% Upside From Here." Now there's only about 60% upside. But that's using our 2018 numbers. We probably need to start using 2019 numbers. Uh oh.
So closing at a new high would be just one train stop on its way to $25. All-aboard.
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We are long AMD for a customer.