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Advanced Micro Devices, Inc. (AMD) Is On the Right Track

By U.S. News & World Report

Advanced Micro Devices, Inc. (ticker: AMD) has been one of the hottest stocks in the market in recent years. However, since the launch of the company’s Ryzen desktop central processing unit in early March, AMD stock is now down more than 25 percent.

According to Wall Street analysts, AMD still has a long way to go to live up to market expectations, but investors shouldn’t confuse disappointing results with bad ones.

AMD shares initially plummeted more than 19 percent after the company reported an adjusted first-quarter loss of 4 cents per share on Monday. While earnings and revenue of $984 million were mostly in line with analyst expectations, the company’s second-quarter guidance came up short of what investors were hoping for in the Ryzen era. The company’s 33 percent gross profit margin guidance for the second quarter was a red flag to Goldman Sachs analyst Toshiya Hari.

Hari initiated a “sell” rating on AMD back on April 6, citing concerns about the stock’s steep valuation.

But while few analysts are stepping in to defend AMD’s weak guidance, some at least see a light at the end of the tunnel for AMD investors.

[Read: Pokemon Go Shows Promise of Augmented Reality Products.]

“We believe Ryzen is priced aggressively to spur demand, limiting [growth margin] leverage, at least initially,” Oppenheimer analyst Rick Schafer says. If his theory is correct, AMD may have some pricing leverage down the road as long as Ryzen continues to get glowing reviews from customers.

Schafer also says AMD’s Vega GPUs are a “wild card,” but that investors shouldn’t expect any impact until at least 2018.

Bernstein analyst Stacy Rasgon says AMD has very little margin of error after the stock’s meteoric rise in recent years. “The stock (after the strong run) likely needs perfection to continue the trajectory, and while last night’s results were not necessarily disastrous, they certainly weren’t perfect,” Ragson writes in a new research note.

Wells Fargo analyst David Wong says investors should appreciate AMD’s impressive revenue growth.

“With sales up 18 percent year [over] year in the March quarter and guidance for 12 percent growth in the June quarter, AMD is continuing to demonstrate a recovery in sales and move toward profitability,” Wong says.

[Read: 7 Best Tech Stocks to Buy for 2017.]

Wong maintains an “outperform” rating on AMD and values the stock at between $13 and $15 per share.

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Advanced Micro Devices, Inc. (AMD) Is On the Right Track originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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