- MU shares have dropped sharply since its blowout quarterly report on March 18, leaving investors perplexed.
- MU now trades at the lowest forward price-to-earnings ratio among all S&P 500 stocks.
- Stocktwits sentiment has remained ‘extremely bullish’ through the week, and many traders see the stock weakness as a ‘generational’ buying opportunity.
Micron Technology shares fell 1% in early premarket trading on Friday, extending losses after a six-session slide that erased 23% from the stock.
Shares of peers SanDisk, Western Digital, and Seagate also edged marginally lower.
The previous day, shares had tanked 7% after Google discussed its new compression technology, TurboQuant, which it claims significantly reduces memory usage and increases the speed of AI models.
The development fanned concerns that the technology would reduce demand for memory chips, hammering memory stocks worldwide.
Later in the day, Trump revealed in a Fox News interview that he had recently met with Micron’s head, likely CEO Sanjay Mehrotra, and described the memory chip maker as one of the “hottest” companies today.
Micron is in a unique position: shares have dropped sharply since its blowout quarterly report on March 18, leaving investors perplexed. The firm now trades at the lowest forward price-to-earnings ratio among all S&P 500 stocks.
Meanwhile, the sharp selloff has emboldened retail traders’ view on Micron. On Stocktwits, the retail sentiment has held up in the ‘extremely bullish’ zone through the week, with many users claiming to have accumulated the stock.
“$MU so we are now the cheapest and one of the most profitable stocks on the market,” said a user. Another wrote: “$MU steal of the century at this price.”
“The question is how long will it take to rally a few weeks or few months? I’m not sure but I’m in for the long run,” a user wrote. Some users also claimed Micron’s record date for its dividend payout, set for March 30, was also having a bearing on trades.
Micron shares are up by over 20% year to date.
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