Applied Materials Stock Extends An 8-Day Losing Streak To A 21% Loss
Applied Materials (AMAT) stock is on an 8-day losing streak, down 20.7% since the run began. That erased about $89.1 billion from the company’s market value, which now stands at about $341.4 billion. The stock closed at $430.01 on Thursday, October 15, 40.5% below its 52-week high of $722.23 and 96.0% above its low of $219.35.
How The Streak Stacks Up Against The S&P 500
Returns for AMAT and the S&P 500 over the streak and the periods around it, all ending Thursday, October 15 and including dividends:
| Return Period | AMAT | S&P 500 |
|---|---|---|
| 1 Day | -3.7% | 0.3% |
| 8 Days (Current Streak) | -20.7% | -0.4% |
| 1 Month (21 Trading Days) | 3.5% | 2.6% |
| 3 Months (63 Trading Days) | -18.7% | 4.1% |
| Year To Date | 67.9% | 14.2% |
| 1 Year (252 Trading Days) | 98.2% | 17.9% |
Is This Move About Applied Materials Or The Market?
Over the same 8 trading days, the S&P 500 returned -0.4% including dividends, so the slide is mostly Applied Materials’ own story rather than the market’s. 2 other S&P 500 stocks are currently on losing streaks of 8 days or longer. Over the past three months the stock is down 18.7%, a window that includes the streak; over the other 55 sessions of that window it was up 2.5%.
Do The Fundamentals Justify The Selling?
On the fundamentals, revenue grew 7.8% over the last twelve months, against a median of 17.9% for S&P 500 Information Technology stocks; its operating margin is 31.1%, versus a median of 21.6%; and the stock trades at 36.8 times trailing earnings against a median of 35.6. The read is mixed: margins above the median on one side, revenue growth below the median on the other.
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Falling Prices Test Conviction. Rules Do Not Flinch
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