Micron Stock Could Test $50 After Earnings

Micron Technology, Inc. stock is trading lower on Friday morning after the company beat fiscal second quarter EPS estimates by eight cents while revenues topped expectations by a small margin, lifting 58.2% year over year. The results and higher third quarter guidance failed to stir buying interest, which makes sense following a vertical advance that has lifted the memory giant’s shares nearly 70% since the second week of February.

The rally wave has triggered extremely overbought technical readings at the same time the U.S. is engaged in a trade fight with China, exposing the semiconductor sector to retaliation that could undermine 2018 profits. President Trump’s decision to block the acquisition of local chipmakers by foreign powers complicates this equation because it could speed up China’s chip fab development, adding a massive low-cost competitor to the market landscape. (See also: Micron’s Soaring Stock Faces Wild Swings Ahead.)

 

Micron is pulling back despite a strong quarter and bullish guidance, and overbought readings could generate a test at new support near $50. …read more

Read more here: Micron Stock Could Test $50 After Earnings

Category: MU

Leave a Reply

%d bloggers like this: