Applied Materials (NASDAQ: AMAT) gave its market a reason to sell with its Q3 results. However, the 15% pre-market decline is a knee-jerk reaction to news that opens up a solid buying opportunity. The primary cause for the sell-off is weak guidance and uncertainty.
The critical takeaway is that this company’s business tends to be lumpy, ie, results can be iffy on a quarter-to-quarter basis due to timing and market dynamics, and end-market normalization is at hand in China.
