MU
A classic “good news, still red” morning
Micron is doing that annoying stock-market thing where the headline sounds fine, but the shares still wobble anyway. The stock was down 4.78% in Wednesday premarket trading to $891.13, even after Goldman Sachs kept a Neutral rating and lifted its price target to $900 from $400.
Why the mood is off
The overnight tape is basically wearing a black hoodie. Nasdaq futures were down 1.47% and S&P 500 futures fell 0.93%, so Micron is getting hit with the same risk-off breeze blowing through the whole market.
Meanwhile, the chart says the rally may be taking a breather:
- The stock is still above its 20-day moving average of $866.97
- It remains well above the 50-day, 100-day, and 200-day lines
- But MACD has dipped below its signal line, which is trader-speak for “momentum is losing steam”
The real catalyst is still ahead
Micron is set to report earnings on June 24th, and Wall Street’s expectations are spicy: analysts are looking for $19.33 in EPS on $33.90 billion in revenue. That’s a very different company than the one doing $1.91 a share a year ago, which is why this stock has had such a monster 12-month run.
Big picture
Goldman’s higher target is nice, sure — but when a stock has already sprinted this far, even a compliment can feel like a shrug. For investors, the question isn’t whether Micron has had a huge run. It’s whether the next leg is coming from earnings, or if the stock needs to cool off before the next caffeine shot.