I have a healthy obsession with Micron (MU) stock.
You probably got that vibe this week on my show, Sozzi Unleashed.
I can’t find a single company in the expansive universe of stocks I follow that is growing by billions of dollars per quarter and trades on a laughable single-digit forward P/E ratio. (Thank you for the reminder on this one, Yahoo Finance AlphaSpace.)
But hear me out here first.
How the stock market works has a lot in common with how overachievers view themselves.
The stock market is always in a race with itself to find the next big thing. Predict the next big thing, and the trading portfolio could look a lot greener. Overachievers are in the boat, always looking to execute on the next big thing in a bid to keep their overachiever status intact.
For both, it’s a vicious cycle that often leads to one outcome: failing to appreciate the here and now.
I think this logic could be applied to Micron’s financials.
Micron blew it out of the water on its earnings day this week. Crushed it on every single line item. And with guidance.
The main headline was that the memory chipmaker beat sales and profit forecasts for the quarter, driven by voracious demand from the AI boom. Guidance was also strong, except for margin comments on the earnings call — which may have caused the muted market reaction.
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1,074.89-22.50(-2.05%)
At close: <a href="https://myappsplus.com/nyt-strands-hints-and-answers-for-monday-<a href="https://myappsplus.com/quordle-hints-and-answers-for-monday-october-5-game-1715/” title=”Quordle hints and answers for Monday, October 5 (game #1715)”>october-5-game-946/” title=”NYT Strands hints and answers for Monday, October 5 (game #946)”>October 2 at 4:00:01 PM EDT
But keep Micron’s quarter in the proper context.
Consider this: Micron added about $43 billion in sales during the most recent quarter compared to the year-ago quarter. It added more than $13 billion in sales from the quarter reported three months ago! All of this is massive.
Operating margins exploded in all business segments. In fact, operating margins are over 80% in some segments.
What’s more, Micron execs signal tight capacity and higher prices for its products until 2028.
“We believe expectations for tightening supply-demand conditions through both 2027 and 2028 meaningfully extend the industry’s runway for strong pricing and earnings growth, addressing a key investor concern that current fundamentals represent a cyclical peak,” D.A. Davidson analyst Gil Luria said.
The stock market is forward-looking, so the race is on to predict Micron’s next 12 months of results. Don’t lose sight of what this company is doing right now, is all I’m saying.
The same goes for your overachieving self.
Brian Sozziis Yahoo Finance’s Executive Editor, host of theSozzi Unleashedmorning show and thePower Players with Brian Sozzipodcast, and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X@BrianSozzi,Instagram, andLinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.
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