Applied Material Inc. (AMAT) is close to decisive technical level

Shares of Applied Materials Inc. (NASDAQ: AMAT) fell on Thursday, a day after the chip equipment maker posted a drop in quarterly profit and said it was cutting up to 1,500 jobs as part of a restructuring plan.

Shares of Applied Material Inc. (AMAT) dropped by almost 3% in early trades. The stock, which is already hovering around $12.82, could move into a bearish trend, once it slips below $12.65, which is its 200 days MA.

The only positive side according to analysts is that the company has made significant strides in terms of restructuring its business model.