|Day's Range||4.2000 - 4.4500|
Micron is leading the semiconductor industry higher today. The stock is soaring after the company beat on earnings and issued guidance that was better than many feared. Yahoo Finance's Dan Howley and Seana Smith discuss on "The Ticker."
Profits reports are beginning to paint a troubling picture for much of corporate America, especially for multinational companies with exposure to China.
The Dow Jones Industrial Average ended down Wednesday after Treasury Secretary Steven Mnuchin said the U.S. and China were "about 90% of the way" to reaching a trade agreement, while President Trump said he wants to make a trade deal with Beijing, but is happy where things are now. rose after the chipmaker's fiscal third-quarter earnings and revenue beat Wall Street forecasts and the company said it expects a solid rebound in memory demand later this year. Micron Technology is Real Money's Stock of the Day.
The S&P 500 ended lower on Wednesday as gains in technology stocks were offset by a drop in healthcare shares, and investors parsed mixed messages over prospects for a deal to end a trade war between the United States and China. Technology shares led the Nasdaq higher while the Dow Jones Industrial average posted a nominal loss.
The energy sector and technology stocks led the market Wednesday, but indexes closed the session in weak form, making negative price reversals.
As my colleague Jitendra Parashar wrote recently, the S&P 500 opened higher today after Treasury Secretary Steven Mnuchin indicated that a deal is 90% done.
On May 15, the US banned US companies from selling or buying technology deemed critical to national security from China’s Huawei and its 67 affiliates blacklisted by the government. Micron (MU) earned 13% of its revenue from Huawei in the first half of fiscal 2019.
Western Digital stock has gotten some potentially good news from its competitor Micron’s latest earnings report, according to Craig-Hallum.
Time and time again over the last six months, chip stocks have shown a knack for reminding us just how low Wall Street's expectations are for the group, thanks to trade tensions and a cyclical downturn. May quarter report is the latest case in point -- particularly given that chip equipment makers are joining chip suppliers in trading higher. Certainly, much of what was shared via Micron's earnings report and call was far from rosy.
Technology shares led the S&P 500 and the Nasdaq higher on Wednesday after remarks by Treasury Secretary Steven Mnuchin rekindled hopes for a de-escalation of U.S.-China trade tensions and brought buyers back from the sidelines. All three major U.S. stock indexes were up, though off session highs.
On July 25, Micron Technology (MU) stock rose as high as 10% in after-hours trading as investors reacted to its better-than-expected fiscal 2019 third-quarter earnings results. However, the stock is likely to fall by the end of this week.
The Dow Jones Industrial Average is getting a lift thanks in part to Microsoft. Chip, fiber optic and software firms boost the Nasdaq higher.
Wall Street rose on Wednesday, as technology shares gained on the back of Micron's upbeat results, while comments from Treasury Secretary Steven Mnuchin fueled hopes that the United States and China were making progress in their trade talks. "We were about 90% of the way there (with a deal) and I think there's a path to complete this," Mnuchin said in an interview to CNBC. President Donald Trump said earlier in the day it was "absolutely possible" he would emerge from a meeting with Chinese leader Xi Jinping with a deal that would keep him from imposing tariffs he had threatened to put on China.
Micron (MU) shareholders have had a bumpy 2019. One analyst, however, thinks the current stock price could offer new investors an opportunity to get into MU on the cheap.This morning, Needham analyst Rajvindra Gill upgraded the stock from Hold to Buy and assigned this $37 stock a $50 target price. We did the math for you, and that's an upside of nearly 35%.Micron’s May quarter was better than feared with sales of $4.79 billion above consensus estimates of $4.74 billion. Non-GAAP EPS was $1.05 exceeding consensus expectations of $0.82 driven by a tax benefit. Full year sales are now expected to be around $4.5 billion, compared to analysts expectations of $4.56 billion.Gill commented, "We are upgrading Micron to a Buy from a Hold after remaining cautious on the name since the beginning of the year. August EPS guidance of $0.45 (at mid-point) was better than feared as some investors believed the company would lose money. The company has seen normalizing inventory levels in the cloud, graphics, and PC end markets, as customers digest excess inventory. Another significant tailwind is MU's resumption of shipments of certain products to Huawei in the last 2 weeks. With an improved DRAM outlook for C2H19, significant CAPEX cuts coming in FY20, and a stabilizing book value per share of $31.89 (trading at trough P/B multiple of ~1x), we believe there's limited downside risk over the next 6-12 months."Micron stock rallied on Wednesday, surging by nearly 14% as investors reacted to the company's better-than-expected numbers.All in all, Wall Street’s confidence backing this chip giant is strong, with TipRanks analytics showcasing MU stock as a Buy. Based on 22 analysts polled in the last 3 months, 13 are bullish, 5 are neutral and 4 are bearish. The 12-month average price target stands at $42.90, marking a nearly 15% upside from where the stock is currently trading. (See MU's price targets and analyst ratings on TipRanks)Read more: Micron (MU) Stock Remains a Longer-Term Value Play, Says Analyst More recent articles from Smarter Analyst: * Conatus (CNAT) Stock Price Could Hit Zero * Tesla (TSLA) Scrambles to Restore Faith; Wedbush Remains Cautions on the Stock * Has Roku Stock Price Hit Its Peak? * Will Qualcomm (QCOM) Stock Win Again? Canaccord Remains Bullish
The company also said it had resumed some shipments to Huawei Technologies after reviewing a U.S. ban on selling products to the Chinese smartphone maker. Micron shares were up 10%, while those of Nvidia Corp, Intel Corp, Xilinx Inc and Advanced Micro Devices rose between 2% and 6%. "The bulls in Micron could simply not have asked for more," Evercore analysts' wrote in a note.
climbed 7.9% to $44.33 Wednesday after Craig-Hallum upgraded the data storage device company's stock to buy from hold with a price target of $54. Micron Technology beat analysts' forecasts in its third-quarter earnings and said it sees a solid rebound in memory demand over the second half of the year. There are risks investing in Western Digital, Schwab wrote, noting that the hard drive industry is characterized by declining average selling prices.
stock is moving up in a big way on Wednesday morning as bullishness builds on a semi rebound, but the crescendo of green is increasing the conviction of skeptics that the surge will be short lived. Shares ran nearly 15% to the upside shortly before mid-day after the Sanjay Mehrotra-led company cleared its low bar on earnings and encouraged optimism on the normalization of supply and demand in memory. "In early April, the company had erroneously signaled a bottom in the inventory cycle -- and the shares spiked higher," Seabreeze Partners president Doug Kass commented on Tuesday.
Revenue of $4.79 billion inched above consensus of $4.77 billion, but it is fair to note that Micron's revenue would have been closer to $5 billion had it not been for challenges associated with Huawei. The stock received more lowered price targets than upgrades or raised price targets, so while expectations that the business isn't as bad as some believed doesn't equate to an all-clear sign in terms of valuation. While best guesses point towards the 2H19 as a turning point for NAND with DRAM to follow a quarter or two later, Micron still has several headwinds.