Micron Rips, Bears Flip
DISCLAIMER: This note is intended for US recipients only and, in particular, is not directed at, nor intended to be relied upon by any UK recipients. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Read our full disclaimer, here.
Analysis by Alex King, CEO, Cestrian Capital Research, Inc.
The folly of opinion in investing and trading is laid bare by the run in Micron $MU stock. The company has delivered truly incredible fundamentals for about two years now, driven of course by ramping demand for memory amongst hyperscalers and the lack of supply of memory by the three major players in the sector (Micron, SK Hynix and Samsung). The stock has gone from a rather tricky, volatile name which generally disappointed on earnings prints, to an only-up name. Shareholders in the stock have churned from longtime specialists such as David Tepper into a retail army. The retail holders have proven absolutely correct in their adherence to the name; all the way up you have seen analysts of the professional and armchair variety opine that “it’s a bubble”, “it’s way overvalued”, “it has to top soon”, “it’s cyclical”, etc etc.
No stock goes vertical forever, and Micron will be no exception. So in the light of today’s blowout earnings print, should one hold, sell, or buy Micron stock?
Let’s take a look.