MU Stock Slides Most In Nearly 2 Months, Retail Suggests Buying The Dip

• Despite the selloff, retail users on Stocktwits remained ‘extremely bullish’ on the stock, citing earnings power and strong valuations. 
• Earlier this month, Micron faced a steep decline in share prices following a report from Google on new compression technology, TurboQuant, which is touted to reduce memory usage considerably.
• Separately, U.S. President Donald Trump has also called Micron one of the “hottest” companies in the market.

Shares of Micron Technology Inc. (MU) slipped more than 8% on Monday, the steepest slide since early February, amid a broader market selloff.

The stock garnered significant retail attention on Stocktwits, with message volumes climbing more than 110% in the past 24 hours and in the ‘high’ territory, as per data from the platform on Monday.

Despite the selloff, retail users on Stocktwits remained ‘extremely bullish’ on the stock, citing earnings power and strong valuations.

What Is Retail Saying?

One bullish user noted that Micron’s forward price to earnings ratio was at 3.9, adding that the company’s shares were currently in a bargain territory.

Another user attributed the “brutal selloff” to the war in the Middle East and its broader impact on the market. The user added that they believe a turn in market sentiments would send the stock’s price soaring again.

A third user said that while the company had reversed most of its year-to-date gains, it still seemed like a good ‘buy’.

Memory Concerns, Earnings Results

Earlier this month, Micron faced a steep decline in share prices following a report from Google on new compression technology, TurboQuant, which is touted to reduce memory usage considerably, as well as speed up AI models, stoking concerns for memory demand.

However, the company posted blowout quarterly results on March 18, with revenue nearly tripling to $23.86 billion and earnings beating consensus estimates by a fair margin. The memory-chip maker also forecast revenue of about $33.5 billion, plus or minus $750 million versus street expectations of $22.48 billion, for the upcoming quarter.

Separately, U.S. President Donald Trump has also called Micron one of the “hottest” companies in the market.

Micron shares are up more than 276% in one year.

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