Micron: Is the Super Cycle Over?
Micron Technology (NASDAQ: MU ) stock fell hard into its June 30 earnings release, with investors betting on lower profits and guidance. The stock opened June 30 at about $56 per share, a market cap of $62.5 billion, but a price-to-earnings multiple of just 7x. Shares started the year at about $96. Despite its value price, analyst estimates remain bullish. The company was expected to earn $2.46 per share on revenue of $8.7 billion. There was even a “whisper number,” a hoped-for estimate of $2.50 per share. The company’s 29 analysts were expecting an earnings downturn until 2023, with $7.56 per share of earnings. That would still give Micron a forward P|E of 7.4x. Micron wound up earning $2.6 billion, $2.34 per share, on revenue of $8.64 billion. The numbers were short of analyst estimates. The initial reaction was a drop to $52, but it finished the week up at $59 per share. Ticker Company Recent Price MU Micron Technology $58.85 Cheap as Chips Memory chips have the most volatile prices in the semiconductor market.
Micron: Is the Super Cycle Over?
Micron Technology (NASDAQ: MU ) stock fell hard into its June 30 earnings release, with investors betting on lower profits and guidance. The stock opened June 30 at about $56 per share, a market cap of $62.5 billion, but a price-to-earnings multiple of just 7x. Shares started the year at about $96. Despite its value price, analyst estimates remain bullish. The company was expected to earn $2.46 per share on revenue of $8.7 billion. There was even a “whisper number,” a hoped-for estimate of $2.50 per share. The company’s 29 analysts were expecting an earnings downturn until 2023, with $7.56 per share of earnings. That would still give Micron a forward P|E of 7.4x. Micron wound up earning $2.6 billion, $2.34 per share, on revenue of $8.64 billion. The numbers were short of analyst estimates. The initial reaction was a drop to $52, but it finished the week up at $59 per share. Ticker Company Recent Price MU Micron Technology $58.85 Cheap as Chips Memory chips have the most volatile prices in the semiconductor market.