|Bid||55.41 x 800|
|Ask||55.42 x 900|
|Day's Range||54.62 - 55.89|
|52 Week Range||32.14 - 60.56|
|Beta (5Y Monthly)||1.98|
|PE Ratio (TTM)||17.91|
|Earnings Date||Mar 17, 2020 - Mar 22, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||May 06, 1996|
|1y Target Est||65.93|
At this point, Nokia (NYSE:NOK) is a 5G (fifth-generation) wireless play. And one of the potential drivers of Nokia's growth in 5G is political pressure on key rival Huawei. The combination of a growing market and a weakened competitor has been a key pillar of the bull case for Nokia stock.Source: RistoH / Shutterstock.com The problem is that the competitive environment hasn't been quite as favorable as bulls hoped, at least so far. The company itself lowered 2020 earnings per share guidance after its third quarter report in October. 5G in fact was a key culprit in that cut.Nokia forecast higher-than-expected spending this year in a bid to better compete in 5G. As a result, operating margins are expected to be 3 to 4 full points lower than previously thought.InvestorPlace - Stock Market News, Stock Advice & Trading TipsNOK declined 24% on the lowered outlook, its biggest one-day decline in 19 years. Shares have rallied in recent weeks, and the gains do make some sense. But the broader issues remain. * Invest in America's Most Trusted Brands With These 7 Stocks to Buy This is a company with a long history of overpromising and underdelivering. It hasn't proven it can win enough in 5G to support even the currently modest valuation. Meanwhile, it's becoming increasingly clear that hopes for a two-company race in networking equipment may have been too optimistic. Huawei PersistsOn May 15, 2019, President Trump signed an executive order that effectively banned Huawei from the U.S. market. Huawei also faces limitations on using components from American suppliers; memory chipmaker Micron Technology (NASDAQ:MU), for instance, forecast a big hit to revenue following the order. Apps from Alphabet (NASDAQ:GOOG,NASDAQ:GOOGL) now are unavailable on Huawei smartphones.The pressure goes beyond the U.S. market. The Trump Administration has leaned on allies such as Britain and Germany to remove Huawei from their telecommunications infrastructure. That pressure would seemingly leave Western 5G deployments as a two-company race between Nokia and Swedish rival Ericsson (NASDAQ:ERIC).But as Bloomberg detailed earlier this month, it hasn't quite worked out that way. The furor over Huawei actually has led to increased name recognition, and the company's sales rose 18% in 2019. Some -- and possibly most -- of that growth is being driven by the smartphone business, but Huawei's networking business "isn't just surviving; it's actually thriving in some areas," particularly in Asia.In Germany, lawmakers are pushing for Huawei's removal from the country's telecommunications network -- but the government led by Prime Minister Angela Merkel is pushing for its inclusion. Telefonica Deutschland (OTCMKTS:TELDF) chose both Huawei and Nokia for its 5G deployment despite that controversy, another data point showing the Chinese supplier's ability to remain competitive in Europe. The 'Simple' Case for Nokia StockTo be sure, Huawei is going to be hamstrung in key markets for 5G equipment. U.S. pressure will have an impact -- and that's going to benefit Nokia as it looks to ramp up 5G equipment sales.But that pillar alone doesn't look like enough of a driver for Nokia stock at this point. Nokia still lags behind Ericsson and Huawei in announced 5G wins. 2020 guidance has been cut, and investors should take even that reduced outlook with a grain of salt given the company's history.Meanwhile, 5G does help growth -- but Nokia loses some sales of 4G equipment in the process. There's a net positive, yes, but it's not as if Nokia's revenue growth suddenly is going to accelerate into the double-digits. That's particularly true if Huawei maintains some level of market share in networking equipment, as appears to be the case.And so the "simple" bull case here isn't simple, but overly simplistic. Yes, 5G helps, yes, the Huawei ban, in whatever form it eventually takes, is a positive. But execution has been poor. Nokia might gain some share from Huawei, but it's clearly losing share to Ericsson at the same time. The dividend is gone, and this company has disappointed investors for years despite being on the right side one of the worst deals in recent history: Microsoft's (NASDAQ:MSFT) $7.6 billion acquisition of Nokia's smartphone business in 2013.Put another way, there are plenty of reasons why Nokia stock hit a six-year low in November, and there are plenty of reason why the recent bounce should be discounted. It's possible Nokia can claw its way back to growth and positive returns, but it's going to take a lot more than a bit of help from the U.S. government.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks on the Move Thanks to the Davos World Economic Forum * Invest in America's Most Trusted Brands With These 7 Stocks to Buy * 7 Earnings Reports to Watch Next Week The post Why Pressure on Huawei Isn't Going to Save Nokia Stock appeared first on InvestorPlace.
Many investors and pundits assume that Micron (NASDAQ:MU), as in the past, will remain defined by sharp upturns and equally sharp downturns. These skeptics believe that Micron stock's price-earnings ratio will stay quite low.Source: Shutterstock But multiple huge demand drivers for Micron's flash memory devices -- along with the company's recent decision to develop new, non-commoditized products -- look poised to largely eliminate the stock's downturns and transform MU into one of the tech sector's best performers. Huge Demand DriversThere are four huge demand drivers for Micron's flash memory products: real-time data analytics, artificial intelligence (AI), vehicles with advanced driver-assistance systems (ADAS) and the Internet of Things.InvestorPlace - Stock Market News, Stock Advice & Trading TipsReal-time data analytics utilize NAND flash memory, one of Micron's key products, and more and more companies are starting to prioritize real-time data as a way to gain an edge over their competitors. In November, prestigious research-firm Gartner named augmented analytics, i.e. automated, real-time analytics, as its top technology trend. According to the firm, "by 2020, augmented analytics will be a dominant driver of new purchases of analytics and business intelligence as well as data science and machine learning platforms." That means that companies are going to be buying more analytical devices that utilize Micron's NAND. * The 7 Stocks That Cautious Investors Should Sell Now Another one of Micron's top products, a form of flash memory called DRAM, is typically used in conjunction with artificial intelligence, according to top consulting firm McKinsey. Research firm Tractica expects annual spending on AI to expand at a compound annual growth rate of 43% between 2018 and 2023, generating revenue of $126 billion by 2025.Two other rapidly expanding technologies that use NAND memory are ADAS and the Internet of Things. Research firm TechNavio predicts that spending on ADAS will grow by an impressive $57.5 billion between 2020 and 2024. Gartner estimated that the number of connected devices would rise 21% this year.A publication called Embedded Computing Design supports the argument that the extreme volatility of the flash memory market is over. In November, the website said "the flash memory market is no longer cyclical," due primarily to "rising demand from less seasonal markets, like automotive and enterprise." It added that flash memory has become less commoditized because the copmany's new end markets have more stringent requirements than consumer electronics devices. Micron Stock Is Likely to Be Boosted by Micron's New ProductsMU looks to be taking advantage of this decline in commoditization by launching two new products that each exploit one of the trends described above. The company's FWDNXT Deep Learning Accelerator utilizes Micron's flash memory to enable AI capabilities to be added to all edge devices. The product should become quite popular as companies step up their use of AI.More impressively, the company's CEO, Sanjay Mehrotra, said that it has launched "the world's fastest storage device." Called the Micron X100 SSD, the device is faster than any other SSD (solid-state drive), according to Mehrotra. AI, the Internet of Things, ADAS and real-time data analytics all require devices to respond quickly to users' requests. As a result, demand for the X100 hardware should be quite strong. Analyzing Micron's Price Action and ValuationThe price action of Micron stock also suggests that the company's cyclicality has largely ended. Specifically, despite the fact that MU suffered a downtrend beginning in summer 2018, shares only dropped about 12% between the summer's peak and the end of 2019. The stock dipped much lower at the end of 2018, but the entire tech sector had slumped tremendously during that time.And now, despite the fact that Mehrotra said that he thinks the company's business will bottom this quarter, MU is trading at just 11 times analysts' average 2020 earnings per share estimate for the company. That's an absurdly low valuation for a tech stock with as many strong catalysts as Micron. Investors should take advantage of the disconnect by buying the shares.As of this writing, Larry Ramer did not own any shares of the companies mentioned above. However, he may initiate a position in MU within the next week. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Stocks That Cautious Investors Should Sell Now * 7 Healthcare Stocks With 100% Street Support * 3 Chinese Stocks to Buy, Sell, or Play from Either Side The post Judge Micron Stock by Its Future, Not The Past appeared first on InvestorPlace.
(Bloomberg) -- Intel Corp.’s better-than-expected forecasts delivered the kind of good news semiconductor investors were looking for to justify record highs.The biggest U.S. chipmaker projected revenue in the current quarter of about $19 billion, more than $1 billion above the highest analyst estimate, according to data compiled by Bloomberg. Perhaps even more important for the broader industry, Intel’s data center revenue in the fourth quarter also expanded by 19%, compared with the same period a year ago. That beat the average of analyst estimates compiled by Bloomberg at 5.3%.Nvidia Corp., Micron Technology Inc. and Advanced Micro Devices all rose more than 1.5% in after-hours trading while Intel gained as much as 7.8%. The Philadelphia semiconductor index has gained more than 5% since the start of the year and closed at a fresh record on Thursday.Intel’s results came a day after Texas Instruments Inc. calmed nerves with a forecast that met estimates but failed to spark a rally.To contact the reporter on this story: Jeran Wittenstein in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Catherine Larkin at email@example.com, Jennifer Bissell-LinskFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
DRAM, or dynamic random-access memory, is used in desktop computers, mobile phones, and servers, while NAND is flash memory used in smartphones and solid-state hard drives. Western Digital (WDC) is another maker of NAND flash memory and manufactures mechanical hard drives. On Thursday, Morgan Stanley analyst Joseph Moore raised his ratings for both Micron and Western Digital to Overweight from Equal-weight.
Analyst Joseph Moore upgraded Micron from Equal-Weight to Overweight and increased the price target from $56 to $73. The analyst sees DRAM as a gradual bottoming process, yet thinks Micron will rerate. Although there is no shortage for DRAM, buyers anticipate shortages, which has led to gradual price improvement.
U.S. stock indexes fell on Thursday, as mounting worries over a coronavirus outbreak in China, disappointing corporate earnings and weakness in financial stocks prompted investors to hit the brakes after a strong rally this year. China put on lockdown on Thursday two cities at the epicentre of the coronavirus outbreak that has killed 17 people and infected nearly 600 amid fears the transmission rate will accelerate as hundreds of millions of Chinese travel for the Lunar New Year holidays.
(Bloomberg) -- Micron Technology Inc. and Western Digital were both upgraded to overweight from equal-weight at Morgan Stanley, the latest firm to express optimism about pricing for memory-related semiconductor products.“We did not expect memory fundamentals to bottom this quickly, but as proof points grow, the ramifications are significant,” analyst Joseph Moore wrote to clients. This trend could mean more upside potential for the stocks, “even given the moves we have already seen.”The firm raised its price target on Micron to $73 from $56, and its Western Digital target to $88 from $64, not far from the Street-high view of $90.Shares of Micron jumped 2.4% to their highest level since June 2018 while Western Digital was up as much as 4.9% to touch its highest since July 2018. Both stocks have been on a tear of late, up about 90% since the end of 2018. The Philadelphia Semiconductor Index is up 67% over the same period.“We missed a large move,” Moore admitted in a note to clients.The upgrade comes after Morgan Stanley last month raised its view on the overall semiconductor sector to in-line, writing that that fundamentals were bottoming and that consensus estimates had moved lower.On Thursday, Moore noted that memory prices had “started to stabilize six months ago,” but that in the last several weeks “we have seen a notable difference in mentality from memory buyers that belatedly convinces us that these changes can persist.”Cowen, in a note dated Jan. 22, wrote that smartphones were acting as a tailwind for memory demand. Analyst Karl Ackerman called the product category “the sponge that is quickly soaking up excess memory supply,” causing supply “tightness” and lifting average selling prices. He wrote that Micron was one of the “largest beneficiaries,” from the trend, although Western Digital “is also well positioned.”Earlier this month, Cowen also raised its view on Micron and Western Digital, also citing improved memory trends. In late December, Susquehanna Financial Group upgraded both stocks as well, while RBC Capital Markets wrote that it was “officially calling the bottom on memory pricing.”Western Digital is scheduled to report second-quarter results on Jan. 30. In December, Micron reported first-quarter results, which beat expectations and gave a sales forecast that was seen as strong.(Updates trading to market open in fourth paragraph)To contact the reporter on this story: Ryan Vlastelica in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Catherine Larkin at email@example.com, Steven Fromm, Scott SchnipperFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Shares of Micron Technology Inc. and Western Digital Corp. are up about 2% each in premarket trading Thursday after Morgan Stanley analyst Joseph Moore upgraded both stocks to overweight from equal weight. "We did not expect memory fundamentals to bottom this quickly, but as proof points grow, the ramifications are significant," Moore wrote. "The higher trough and the elevated valuation environment for semis suggests memory rerating potential even give the moves we have already seen." Micron's stock has added 32% over the past three months, and Western Digital's has gained 19% as the S&P 500 has risen 11%. Moore's channel checks point to "real conviction" from customers that the memory market will get tighter throughout this calendar year, which is causing them to put more inventory in place. Moore upped his price target on Micron's stock to $73 from $56, and he increased his Western Digital target to $88 from $64.
Wall Street was set to open lower on Thursday on rising worries over the coronavirus outbreak in China that prompted a lockdown of two cities in the country, while a mixed bag of results added to the dour sentiment. The benchmark S&P 500 closed slightly higher on Wednesday but well below its record high after attempting to bounce back from sharp losses earlier in the week on concerns about the virus outbreak hitting the global economy. China put on lockdown on Thursday two cities at the epicentre of the coronavirus outbreak that has killed 17 people and infected nearly 600 amid fears the transmission rate will accelerate as hundreds of millions of Chinese travel for the Lunar New Year holidays.
The S&P 500 and the Nasdaq were set for record highs on Wednesday, as investors took heart from China's efforts to contain a virus outbreak and a strong forecast from IBM. The main indexes retreated from record highs on Tuesday after officials confirmed the first U.S. case of the coronavirus that has killed nine and infected 440 in China. "While the death toll has risen to nine, it feels like affirmation we're getting out of China is stemming fears that this is turning into an epidemic," said Art Hogan, chief market strategist at National Securities in New York.
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