5 Biggest Losers Today

1. Micron Technology, Inc. (NASDAQ:MU)

Number of Hedge Fund Holders: 69

Shares of Micron Technology, Inc. (NASDAQ:MU) plummeted to a new low before the opening bell on Wednesday. The drop came after Mizuho downgraded the memory and storage solutions provider from “Buy” to “Neutral.”

Mizuho analyst Vijay Rakesh was primarily moved by the weakening DRAM and NAND memory prices. The analyst also referred to the fading demand in China and Europe. He cut his price target for Micron Technology, Inc. (NASDAQ:MU) from $75 per share to $56 per share.

Meanwhile, investment management firm ArrowMark Partners also discussed Micron Technology, Inc. (NASDAQ:MU) in its second-quarter 2022 investor letter, stating:

“Micron Technology, Inc. (NASDAQ:MU) is a leader in the production of DRAM and NAND memory. We invested in the stock in the third quarter of 2019 during a cyclical downturn in the memory industry. Our rationale was that, while the memory industry is cyclical, we believed there are strong secular drivers in place that will lead to higher peaks and long-term growth. Our secular thesis is based on our conviction that the quest for ever-increasing compute speeds will increasingly rely on memory to solve bottlenecks and that increased memory content in nearly everything from mobile phones to automobiles will drive demand. Micron’s stock traded lower during the quarter due to macroeconomic concerns that led to lower earnings expectations. We increased our stake in the company, as we believe our secular thesis remains intact. We wanted to take advantage of what we view as temporary cyclical concerns that caused the stock to trade at less than 10x reasonable trough earnings per share (EPS) estimates and less than 7x recent peak EPS.”

You can also take a peek at 12 Best AI Stocks To Buy and 10 Best Cyclical Stocks for Inflation.

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