Micron Technology, Inc. (NASDAQ: MU) is having an overwhelmingly rough start to the trading session this morning, and for good reason. The company was the center of a downgrade by one of the most trusted analysts on Wall Street. Of course, the news upset investors, sending the stock tumbling down. Today, we’ll talk about:
- The downgrade;
- what we’re seeing from MU stock as a result; and
- what we’ll be watching for ahead.
MU Falls On Downgrade News
As mentioned above, Micron Tehcnology is having an overwhelmingly rough start to the trading session this morning after the stock became the center of a downgrade. Recently, Susquehanna analyst Mehdi Hosseini downgraded MU from Positive to Neutral. The analyst also set a price target on the stock in the amount of $45.00.
The downgrade comes amid mounting competition as Nvidia (NVDA) is hitting MU hard with product offerings along with other competitors that are taking their stabs as well. On top of that, the market seems to be falling into bearish territory, and in these times, only the strongest of the strong tend to see the type of gains that investors are looking for. Unfortunately for MU, it doesn’t look as though this is going to be one of those stocks.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Micron Technology, the news proved to be overwhelmingly negative. After all, Susquehenna is one of the largest and most trusted firms on the street. With a downgrade out of this firm, fear is running high and investors are reacting by pushing the stock to the bottom. As is normally the case, our partners at Trade Ideas were the first to alert us to the declines. Currently (9:31), MU is trading at $38.04 per share after a loss of $1.72 per share or 4.33% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on MU. In particular, we’re interested in seeing if the company can compete better than analysts at Susquehenna are expecting. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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