The processor company Advanced Micro Devices, Inc.(NYSE:AMD) is in the news, this one for the proposed sales of its campus in Austin which could bring in the much needed cash. In fact, the stock rose 8.2% in positive anticipation.
The company expects to raise between $150 million to $200 million from the sale, likely to happen in the first quarter. The second-largest maker of personal-computer processors will lease the space back.
But AMD, which is hard put for cash may find the amount insufficient. “The sale-lease back is more of a short-term Band-Aid,” said the New York-based analyst, Patrick Wang. “It doesn’t change the fact that there’s a chance AMD doesn’t exist anymore in 2 years.”
Shares of the company jumped another 5% after soaring 4% in yesterday’s session. The stock has bounced back 15% from its new low of $1.81.
Meanwhile Zynga Inc(NASDAQ:ZNGA)’s shareholders are far from pleased after the online game maker revealed that its contract with Facebook Inc(NASDAQ:FB) stands amended.
The worry is that come April 2013, Facebook will be free to develop its own games -- something that the agreement did not permit until now. Also, Facebook's standard terms of service will apply to Zynga’s cross-promotion rights.
However, Facebook, has clarified in a statement that it does not have any plans of developing games, music to the ears of other Facebook game makers. "We're not in the business of building games and we have no plans to do so," read the company’s statement. "We're focused on being the platform where games and apps are built."
But the Street is not convinced about this change in relationship. They have already seen the stock crack, and top executives flee the company. The change in the cross-promotion rules may cause some real damage. According to the new rules, when players on Zynga.com share their game status so that it shows up on their Facebook Timeline, the post will no longer link back to Zynga.com; this could affect traffic.
All these worries were reflected in the price movement of the stock. Zynga shares were down more than 7 percent at around $2.43.