Why Micron Technology Rocketed Higher Today
Shares of memory and storage producer Micron Technology (NASDAQ: MU) rose today, up 5.8% as of 3:54 p.m. ET. The move higher was certainly a bit of a surprise, given that Micron guided to a severe decline in revenue and earnings per share for the current quarter as part of its earnings release last Thursday.
However, Micron had been down strongly in June, so this may be a bit of "sell the rumor, buy the news" on its stock today. Additionally, more COVID-19 lockdowns in China were reported over the weekend. Because of the specific cities where lockdowns are currently occurring, that could actually be a positive for Micron, as its largest rivals in DRAM memory and NAND flash have significant operations in the affected cities.
While Micron beat earnings estimates last week, management also guided to a 17% revenue decline and 35% earnings-per-share decline for the current quarter. CEO Sanjay Mehrotra admitted demand had weakened considerably in just the past month, particularly in smartphones and PCs, and especially in China.
Source Fool.com
