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Micron's Weak Industry Demand
Shares of Micron Technology (Nasdaq: MU) dropped 1.41% in after-hours trading on Thursday after the semiconductor company posted mixed financial earnings.
Financials: Micron reported earnings per share of $2.59, which was better than expected. Its revenue of $8.64 billion was in-line.
The Good: There was record revenue in the quarter. Micron also had operating cash flow that was higher year-over-year.
The Bad: Micron lowered its guidance for the quarter. It now projects revenue to be $7.2 billion and the earnings per share to be $1.63. Both projections were below estimates.
Weaker Demand: The company said that “the industry demand environment has weakened” recently.
Numbers: Micron’s stock is down 42% this year. The stock price reached an all-time high in early January.
Final Thoughts: This was a stock that benefited from market conditions in 2021. Now, faced with a different market and more inventory on hand, Micron has to navigate some tough waters. It is a similar story with other tech stocks as well.
Notables
Notable Earnings Today: N/A.
Notable IPOs Today: N/A.
Notable Equity Crowdfunding Campaigns Ending Today: Roog (Ignite Social Impact).
Notable Economic Events Today: Manufacturing PMI (9:45 a.m. ET), ISM Manufacturing PMI (10:00 a.m. ET).
EU Eyes Crypto Regulations
The European Union seems to have reached a deal on a framework regulation of cryptocurrency.
Details: Called Markets in Crypto Assets (MiCA), the framework aims to add requirements for crypto issuers, such as holding reserves like a bank, and a requirement to register with the government.
Background: As the price of cryptos dropped, scams associated with digital currency increased. Governments are under increased pressure to regulate crypto markets in order to protect consumers from risky investments.
Numbers: Most crypto prices dropped Thursday, including a slight decline for Bitcoin.
Final Thoughts: It is only a matter of time before the U.S. adopts similar regulations.
Goldman Sachs Tries to Make the Best of Bad Year
Shareholders in Goldman Sachs (NYSE: GS) know that 2022 has been bad so far, but the banking giant is trying to make some improvements.
Numbers: Shares of Goldman Sachs are down nearly 25% this year. In 2021, the stock increased by 45%.
Recent Developments: This week, an analyst upgraded Goldman Sachs. The company also increased its dividend.
Final Thoughts: Goldman Sachs reports earnings on July 18.
Trends to Watch
Big Box Deal: Costco buys remaining stake in Taiwan joint venture for $1.05 bln (Reuters)
Like a Snail: General Motors Slowly Ramps Up Electric Hummer Production (The Wall Street Journal)
Correlation Between Interest and Price: Bank of America's Crypto Users Shrunk by 50% in Bear Market (Bloomberg)
The Airbnb of Yachting: Borrow a Boat Closes Crowdfunded Offering at £3 Million (Crowdfund Insider)
Halftime: The market’s worst first half in 50 years has all come down to one thing (CNBC)
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