Feeds

Rambus stock tumbles on Tom's Hardware report

The message begins to sink in

  • alert
  • submit to reddit

Maximizing your infrastructure through virtualization

We can only imagine the flames from burnt day traders scorching Tom's Hardware's way following the site's recent blockbuster article and killer test on Rambus, the go-faster for big, big bucks memory technology. This is to blame for a 20 per cent fall in Rambus share price, an analyst claims.

"The stock is getting killed because of the report," Drew Peck, an analyst at SG Cohen Securities, told Bloomberg. He rates Rambus stock 'neutral. "In this environment, it doesn't take much to tip it over. It's more or less and 'shoot first and ask questions later'." Rambus shares fell 76 1/2 to 317 1/8 in "late trading of 3.5 million after touching 316", Bloomberg reports.

Last week Tom's Hardware columnist Van Smith noted vendor "misinformation" concerning Rambus performance. "It seems to be common practice at Intel and Rambus to unload everything they can find to handicap SDRAM when comparing it with RDRAM," he wrote.

"Given Thomas Pabst's latest tests showing that RDRAM actually degrades system performance while doubling the system price, from our vantage point Rambus does not have much to recommend it." Astonishing, isn't it - that it took Tom's Hardware to prick the trading bubble enveloping Rambus? The facts surrounding Rambus - yield problems, expense, performance issues, OEM unpopularity - have all been in the public domain for months. But still, they traded.

Occasionally, a vociferous Rambus-trading claque would pause for breath from chasing the stock skyward, to send abusive emails to The Register accusing us of being anti-Rambus. We're not. Rambus remains a high-risk, high-reward play. But at current market cap - and that's post the Tom's Hardware piece - the risks look understated and the rewards exaggerated. ®

See Also

Tom's Hardware: Dissecting Rambus
Tom's Hardware: Showdown at 133 MHz FSB - Part2, The Real McCoy
Bloomberg: Rambus Shares Fall After Web Site Questions Its Technology to Speed Chips

The Power of One Infographic

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.