Why AMD, Coach, and PetMed Express Tumbled Today

Even though the broad stock market posted another day of modest gains, some stocks gave up substantial ground today. Find out why Advanced Micro Devices plunged 12%, while Coach and PetMed Express both dropped about 6% today.

Jan 22, 2014 at 8:30PM

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

Stocks posted minimal gains today, with the S&P 500 rising a single point even as the Dow declined on earnings-related news. For many stocks, though, the news wasn't as good, as Advanced Micro Devices (NASDAQ:AMD), Coach (NYSE:COH), and PetMed Express (NASDAQ:PETS) all fell substantially today.

AMD dropped 12% after its earnings report included discouraging guidance for its current quarter. Huge sales of video game consoles with AMD chips helped power fourth-quarter revenue up 38% from the previous-year's quarter, but the sales only produced adjusted net income of $45 million. But the company said that it expects first-quarter 2014 sales to drop 16%, and gross margins will likely stay at lower levels for the foreseeable future.

Coach declined 6% after missing earnings and revenue estimates for its holiday quarter. The luxury retailer suffered particularly bad results in North America, where same-store sales fell 13.6%. Even relatively strong 11% growth in international sales excluding currency impacts wasn't enough to offset poor performance closer to home, as Coach continued to struggle against the strength of rival Michael Kors (NYSE:KORS) and its more successful work at making itself a lifestyle brand. Coach needs to find an answer to its lack of popularity if it wants to return to investors' good graces.

PetMed Express also fell 6% after reporting sluggish sales and unimpressive net income. Earnings per share were flat compared to the year-ago period, but the pet-products seller only managed to grow revenue by 1% despite solid increases in reorder and e-commerce sales figures. Despite efforts to cut operating expenses in order to bolster profitability, PetMed Express hasn't been able to deliver the increased traffic that investors have wanted to see. Moreover, as Amazon (NASDAQ:AMZN) starts to notice the profit potential from pet-related sales, PetMed Express could see more competition at the worst possible time for the company.

What's next for retailers?
Coach and PetMed Express disappointed investors today, but to learn about two retailers with especially good prospects, take a look at The Motley Fool's special free report on The Real Cash Kings Changing the Face of Retail. In it, you'll see how these two cash kings are able to consistently outperform and how they're planning to ride the waves of retail's changing tide. You can access it by clicking here.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter: @DanCaplinger. The Motley Fool recommends Amazon.com, Coach, and Michael Kors Holdings and owns shares of Amazon.com and Coach. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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