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Ahead of the Bell: AMD shares fall on 4Q results

Advanced Micro Devices Inc. shares fell 5 percent in premarket trading Friday after the company reported a larger loss for the fourth quarter than analysts anticipated.
/ Source: The Associated Press

Advanced Micro Devices Inc. shares fell 5 percent in premarket trading Friday after the company reported a larger loss for the fourth quarter than analysts anticipated.

The Sunnyvale, Calif.-based chip maker lost $1.4 billion, less than its year-ago loss of $1.8 billion but still more than Wall Street expected.

The company cited deteriorating PC sales, a trend that has hit other bellwether technology companies like Microsoft and Intel Corp.

Jefferies & Co. analyst Adam Benjamin recommended investors sell share of the company.

In a client note Friday, he told investors AMD has a weak balance sheet, limited flexibility because of a licensing agreement with rival Intel and "significant cash burn that likely extends well into 2010."

AMD shares fell 10 cents to $1.92 in premarket trading.