183.49 -0.45 (-0.24%)
After hours: 6:00PM EDT
|Bid||183.21 x 800|
|Ask||183.45 x 1100|
|Day's Range||175.13 - 185.00|
|52 Week Range||124.46 - 292.76|
|Beta (3Y Monthly)||2.29|
|PE Ratio (TTM)||27.74|
|Earnings Date||May 15, 2019|
|Forward Dividend & Yield||0.64 (0.36%)|
|1y Target Est||186.38|
In the trade war between the U.S. and China, Christine McDaniel, Senior Research Fellow at George Mason University, says the “tariffs are really just the tip of the iceberg” and that investors are looking for “real market access changes.” Yahoo Finance’s Alexis Christoforous speaks to her.
Trump’s at It Again: Markets Spooked by Tariff Warning(Continued from Prior Part)US-China trade talksThe US-China trade talks are set to resume next week. The two sides have held four rounds of trade talks since President Trump and President Xi
What Made Memory Stocks the Top Gains of the S&P 500 Index?(Continued from Prior Part)Micron’s fiscal 2019 second-quarter revenue On March 20, Micron Technology (MU) reported its Q2 of fiscal 2019 earnings. The quarter ended on February 28.
When Will DRAM and NAND Market Forces Be Favorable for Micron?(Continued from Prior Part)Advanced DRAM technology DRAM (dynamic random-access memory) is the memory of a system and a key component that drives the system’s performance by aiding in
Trump’s at It Again: Markets Spooked by Tariff WarningTrump spooking markets again Once again, President Trump has spooked markets with his warning about trade tariffs against China (FXI). The White House released a transcript of Trump’s
, which benefits from sales of tools to make memory chips, notched an almost 5% gain on Thursday. Encouraging words from Micron management should convince investors the worst is soon to be over in chip-land. Although the forecast from the company for the current quarter is below consensus, CFO David Zinsner said shipments of its DRAM memory chips should resume their quarter-to-quarter growth this quarter, while NAND flash memory chip shipments should pick up in the subsequent quarter.
When Will DRAM and NAND Market Forces Be Favorable for Micron?Micron’s DRAM business The memory market has been in doldrums. Weak demand in China (FXI) slowed holiday season sales and created excess inventory in the hands of chip makers. While chip
What Fund Managers’ Allocations Say about the Market's Outlook(Continued from Prior Part)The new biggest tail riskIn Bank of America Merrill Lynch’s March 2019 survey, the slowdown in China was cited as the biggest tail risk by the majority of
Tesla is suing former employees, a fast-growing autonomous vehicle startup in Foster City, and an employye at a Chinese automaker with Mountain View offices in a lawsuit that accuses them of trade secrets theft related to self-driving car technology.
Stocks are off to a great start in 2019. All three major indices are up more than 10%, led by a 16% rally in the Nasdaq Composite, and it's still only March.But, not all stocks have had a great year thus far. For every Roku (NASDAQ:ROKU) and Snap (NYSE:SNAP) -- two stocks that are already up more than 100% year-to-date -- there's another stock on the other end of the spectrum that has struggled for gains in 2019.For some of those struggling stocks, the pain will persist because the fundamentals are weak, and only getting weaker. Indeed, that's probably true for most stocks that have struggled amid the recent market rally.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut, for other beaten up stocks, the pain could end soon. The fundamentals are weak today, but getting better. When they do get better, they will converge on a beaten up stock against a healthy market backdrop, and that convergence could spark a rip-your-face-off rally.That's why I've compiled a list of seven beaten up stocks that I think are ready to reverse course soon. These stocks may stay weaker for longer. But, the underlying fundamentals are improving, and ultimately, buyers who exercise patience at these levels should be rewarded with a big rally in the near- to medium-term future. * 10 Stocks on the Rise Heading Into the Second Quarter Which beaten up stocks made the cut? Let's take a look. Axon (AAXN)Source: Shutterstock % Off All-Time Highs: 37%One of my favorite growth stocks back in 2017 was Axon (NASDAQ:AAXN). The thesis was simple. The law enforcement world is outdated. It needs to be technologically upgraded. Axon provides solutions that do just that across a wide spectrum applications, including smart weapons, body cameras and digital recording systems. Adoption of these solutions will grow by leaps and bounds over the next several years. As it does, Axon stock, which seemed hugely undervalued at $20, will rally.Fast forward two years. The big rally in Axon stock happened. It jumped from $20 to nearly $80 in a year and a half. That rally was overdone. Now, the stock has pulled back in a big way to below $50. This pullback is likewise overdone. The core fundamental growth narrative of Axon improving processes and outcomes across the law enforcement world remains healthy and unchallenged (there are basically no competitors). The stock just got ahead of itself at $80.I've long maintained that Axon stock is fundamentally supported and attractive at $50. I maintain that stance today, and that's why I think this stock is ready to reverse course soon. Weibo (WB)Source: Shutterstock % Off All-Time Highs: 56%Calendar 2018 was unkind to all stocks, but particularly so to Chinese tech stocks. In the slaughtered China tech group, one of the biggest losers was Weibo (NASDAQ:WB), which dropped more than 60% off all-time highs and remains more than 55% off all-time highs today.Surprisingly, the big drop in Weibo stock had very little to do with Weibo-specific fundamentals. Those fundamentals have remained very good. The social networking platform has continued to add users and grow revenues at a robust pace, while it has largely maintained its margin profile and consequently grown profits at an equally robust pace. But, what happened in 2018 is everyone freaked out about a slowdown in China, and those fears coupled with escalating trade and FX headwinds to create a tremendous amount of selling pressure on Weibo stock. * 5 of the Best Stocks to Buy Under $10 Things are looking up for Weibo stock in the New Year. China's economy appears to be stabilizing. Trade headwinds are less severe. As are FX headwinds. Meanwhile, the company just reported quarterly numbers that comprised 28% revenue growth, 18% user growth and 26% profit growth. In other words, the macro is improving, and the micro remains favorable. As such, it seems like only a matter of time before Weibo stock stages a huge comeback rally. Nvidia (NVDA)Source: Shutterstock % Off All-Time Highs: 43%Chip giant Nvidia (NASDAQ:NVDA) used to be considered the unstoppable "AI company". Everyone thought that the company had a monopoly in supplying the building blocks for AI-powered technologies. Everyone also assumed that demand in AI-end markets would remain robust forever. Neither of those is true. Nvidia has stiff competition, and demand has slowed. As such, Nvidia has gone from being an unstoppable growth stock, to a severely beaten-up stock trading more than 40% off all-time highs.But, things should improve in 2019. The big headwinds that weighed on NVDA stock in 2018 were inventory issues putting pressure on margins, and trade and economic uncertainty headwinds diluting demand. Those headwinds will become old news in 2019. Nvidia is already cycling through its inventory issues, and trade and economic uncertainty headwinds have become significantly less severe. As such, in 2019, demand should come back into picture, while supply should be reduced. That will create a favorable backdrop for Nvidia to return to healthy revenue growth and gross margin expansion.When that happens, NVDA stock will stage a huge turnaround toward and potentially above $200. Capri (CPRI)Source: Shutterstock % Off All-Time Highs: 54%Shares of global fashion conglomerate Capri (NYSE:CPRI) have been hammered over the past several quarters for various reasons. One, the core Michael Kors brand has lost steam. Two, margins have been under pressure. Three, investors have questioned the Versace acquisition. All together, investor sentiment has been weak, and CPRI stock has dropped more than 50% off all-time highs.I think these concerns are overblown. In the big picture, the morphing together of three luxury fashion brands (Michael Kors, Jimmy Choo and Versace) under one fashion conglomerate umbrella mitigates the financial risks and noise associated with fashion-trend cycles, while boosting brand awareness and equity. Consequently, while the Michael Kors brand will continue to cycle between hot and cold for the foreseeable future, Capri's revenues in 2019 and after will show significantly greater stability. Margins will likewise improve with this enhanced stability. And, because of revenue and margin stability, the Versace acquisition will prove to be more than worth it -- it will ultimately be seen as necessary. * 7 Hot Stocks Under $4 It's only a matter of time before the market realizes this. When it does, investors will flock to this really cheap stock (9-times forward earnings) and that flocking could spark a big recovery rally. AT&T (T)Source: Shutterstock % Off All-Time Highs: 30%The narrative at AT&T (NYSE:T) has been dominated by cord cutting for several years now. Specifically, as more consumers have cut the cord, AT&T's historically stable cable business has struggled. That has created a drag on the company's revenue, margins and profits. To make matters worse, with the acquisition on Time Warner, AT&T is now one of the most indebted companies in history. A bunch of debt on muted profit growth doesn't exactly attract buyers. It attracts sellers, and that's exactly what has happened to this stock.But, a turnaround could be in store. The mainstream and widespread roll-out of 5G wireless coverage is coming, and that will provide a much-needed boost to this company's wireless business. Meanwhile, Time Warner content assets should give AT&T the necessary firepower to expand more deeply into the streaming world and offset cord cutting weakness. Rates have also stopped climbing, so pressure on the balance sheet is easing while the big 6.6% dividend yield is relatively more attractive.All in all, the fundamentals underlying AT&T stock will improve in 2019. As they do, this super cheap, beaten up stock will outperform. Twitter (TWTR)Source: Shutterstock % Off All-Time Highs: 57%In 2018, social media giant Twitter (NYSE:TWTR) was on a roll. Until it wasn't. The stock went from $25, to $50, back to $25, all in the same year, as investors couldn't figure out whether user growth really mattered. Ultimately, the market has settled on the fact that it does matter, as revenue growth and margin expansion have remained robust, but the user base has declined, and Twitter stock trades well off all-time highs.The market made the wrong conclusion here. Monthly active users is a meaningless metric without engagement. What are eyeballs if those eyeballs aren't really interacting or paying attention? Engaged eyeballs for advertising purposes are infinitely more valuable because they lead to more data, which leads to better targeting, more relevant ads, and more ad conversions. At Twitter, those engaged eyeballs continue to go up, as the number of engaged daily active users is growing at a ~10% year-over-year rate. * 5 Stocks To Buy for the Happiest Employees So long as that number continues to grow, revenues will grow, and so will margins. The market will realize this in 2019. When it does, you will see Twitter stock stage a big turnaround. Activision (ATVI)Source: Gamevil Inc. via Flickr% Off All-Time Highs: 48%Much like Twitter, Activision (NASDAQ:ATVI) stock was on a roll. But the stock went from $65, to $80, to $45, all in a matter of twelve months, because near-term positives quickly turned into near-term negatives. Specifically, everyone was expecting a big holiday quarter out of Activision thanks to a new Call of Duty release. That release got delayed. When the game finally did get released, adoption and engagement rates were underwhelming. Fans were disappointed. So were investors. ATVI stock dropped 50%.But, this 50% haircut in ATVI stock seems way overdone. In the big picture, Activision still has three big trends working in its favor. One, digital and mobile consumption globally is only growing, and that lends itself to continued growth in the video game industry, of which Activision is a big player with a broad portfolio of secular appeal games. Two, esports is just starting to come into its own, and Activision is behind arguably the world's most important esports league. Three, innovation in the video game industry is nearing a breakthrough with things like AR/VR and cloud gaming, and those breakthroughs could supercharge growth across the whole industry.Overall, the long-term positives here significantly outweigh the near-term negatives. As such, patience will be rewarded. Eventually, near-term negatives will phase out. When they do, Activision stock will pop in a big way.As of this writing, Luke Lango was long ROKU, AAXN, WB, CPRI, T, TWTR and ATVI. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Specialty Retail ETFs to Buy the Industry's Disruption * 5 Stocks To Buy for the Happiest Employees * 3 Out-of-Favor Consumer Stocks to Buy Compare Brokers The post 7 Beaten-Up Stocks to Buy as They Reverse Course appeared first on InvestorPlace.
Micron: Will Data Economy Opportunities Mitigate Industry Cyclicality?(Continued from Prior Part)Micron in the embedded market Micron Technology (MU) is a pure-play memory manufacturer and will be one of the biggest beneficiaries of the data economy.
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Micron (NYSE:MU) stock has often been the poster child for the technology trade for the last year or so. This is definitely most true for the chip sector -- when it moves, the rest follow.Source: Shutterstock Last year, when Wall Street sentiment was at its worst, investors sold MU stock down to where its trailing price to earnings ratio fell to 2x. That was ridiculously cheap. At the time, sellers had their reasons to do so. Meanwhile, I sold puts against their fears to generate income.But today, there is a longer-term opportunity for the stock into year-end.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThis year, things are much different than in 2018. MU stock came into its earnings event up 26% year-to-date. It is even outperforming the VanEck Vectors Semiconductor ETF (NYSEARCA:SMH) which is lagging 6 points behind. The clear champion still remains Advanced Micro Devices (NASDAQ:AMD) especially after headlines sent it soaring this week. MU Stock After EarningsLast night, Micron report earnings and the stock is up over 6% this morning. Going into the event, investors were bracing for the worst. The industry has yet to shake the meme that they have serious inventory and pricing pressure. Maybe this negative notion will start dying this week.Management reported a decent quarter where they beat both the top and bottom lines. The expectations were low enough that they did not disappoint traders from what was already a bad setup. Investors ignored the big sequential drop in revenues. * 5 Cloud Stocks to Help Your Portfolio Fly The CEO recognized that the environment is indeed difficult but also reassured them that MU stock is executing well on plans and that things will start to improve in the second half of 2019, including the average selling prices of DRAM. This is the proverbial light at the end of the tunnel, and therein lies the opportunity.I trust that management knows its business best, and I bet that in the long term, there is more upside potential than downside risk. The globe is aggressively migrating toward everything being electronic, so the demand on technology products and services will continue to increase exponentially. MU and the rest of the gang will have enough business to feed their stock growth for years to come, starting this year. After all aren't we all agog over the advents of Artificial Intelligence, 5G and autonomous driving?For those who want to own MU for the long-term returns, this is as good a place to enter as any. The stock has momentum and the company just told us that things are going to improve into the year end.But even those who prefer to actively trade it for the shorter-term profits have an opportunity unfolding here.Going into the earnings, Micron stock's short-term range had tightened into a point. This energy needs to disperse, and that usually results in a big move. If the bulls can hold their greens this week then they could target $44 per share.This will be an area of resistance. However $44 is can also be the neckline for a second buy program that would target $52 per share. This would closed the open gap from last September. There will be more resistance zones along the way, like between $46 and $47 per share, but if the stock market in general continues higher, MU has a good chance at sustaining the rally.In short, the CEO told Wall Street that the DRAM crash is almost over and that the chip demand growth is going to improve. So even though Micron stock often falls out of favor, according to management, this time the upside potential is greater than the downside risk.Perhaps the bears got too comfortable shorting this cheap chip stock and will soon be caught in a squeeze. Cheap valuation and strong fundamentals will prevail in the long run.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on Twitter and Stocktwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Specialty Retail ETFs to Buy the Industry's Disruption * 5 Stocks To Buy for the Happiest Employees * 3 Out-of-Favor Consumer Stocks to Buy Compare Brokers The post Micron Stock Finally Gets a Break on an Earnings Report appeared first on InvestorPlace.
Powell Halts Rate Hikes, Trump Might Not Be Pleased(Continued from Prior Part)Economy After its two-day meeting, the Federal Reserve signaled no more rate hikes in 2019. In December, the Fed projected two rate hikes in 2019. The Fed has also toned
Investing.com - Micron surged on Thursday, helping semiconductor stocks add to their swashbuckling gains so far this year after the chipmaker reported earnings that beat estimates.
Micron: Will Data Economy Opportunities Mitigate Industry Cyclicality?(Continued from Prior Part)Micron in the data center marketThe PC and mobile markets are facing falling demand. Micron (MU) is growing in these markets due to increasing memory
Micron in the 2019 Memory Industry Downtrend—What's Different?(Continued from Prior Part)What Micron’s lower PE ratio means to investorsMicron’s (MU) PE and price-to-free cash flow ratios are set to fall in fiscal 2019 as the industry downturn
The chipmaker began rolling out its RTX lineup in late 2018, and early returns have looked sluggish so far. In its February earnings call, Nvidia executives said that sales of the higher-end RTX models released late last year were lower than expected, which was one concerning aspect of an overall disappointing earnings report. Nvidia shares were down 0.75% on Wednesday.
As such, it's time to separate the potential winners from the likely losers from Alphabet's latest moonshot. Alphabet announced during Tuesday's Game Developer Conference that it will utilize AMD GPU for the new cloud-based gaming platform citing the strong relationship between the two companies. "We've worked closely with AMD for years on this project, leading to the development of a custom GPU with leading-edge features and performance for Google Stadia," said Google's head of Stadia development Dov Zimring.