Shares of Micron Technology (NASDAQ: MU) have jumped by more than 7x over the past year, driven by phenomenal growth in the company's revenue and earnings.
However, Micron stock has fallen out of favor with investors lately. It has pulled back 29% since hitting a 52-week high on June 25. This sharp drop is unrelated to the company's financial performance, as it continues to benefit from the ongoing memory shortage. Investors, however, have been rotating out of memory stocks lately, which explains the drop in Micron's shares.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
As a result, it won't be surprising to see Micron management going for a stock split this year. Let's see why that may be the case.
A stock split is a cosmetic move that increases or decreases the number of outstanding shares of a company while keeping the market capitalization constant. A forward stock split is the most common type of stock split, increasing the outstanding share count and lowering the price per share.
#split
However, Micron stock has fallen out of favor with investors lately. It has pulled back 29% since hitting a 52-week high on June 25. This sharp drop is unrelated to the company's financial performance, as it continues to benefit from the ongoing memory shortage. Investors, however, have been rotating out of memory stocks lately, which explains the drop in Micron's shares.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
As a result, it won't be surprising to see Micron management going for a stock split this year. Let's see why that may be the case.
A stock split is a cosmetic move that increases or decreases the number of outstanding shares of a company while keeping the market capitalization constant. A forward stock split is the most common type of stock split, increasing the outstanding share count and lowering the price per share.
#split
3 months ago
