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Micron Faces 'Weaker" Market 📉
Plus, Lennar's mortgage rate pain.
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Today is Thursday, December 19, 2024.
The Early Bird Index today is 77.87
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Micron Faces 'Weaker" Market 📉
A weaker outlook, mixed financial earnings results, and concerning commentary sent shares of Micron Technology (Nasdaq: MU) down 16.15% in after-hours trading on Wednesday.
Financials: Micron reported earnings of $1.79 per share in the past quarter, which was better than expected. Revenue reached $8.71 billion, which was expected.
Outlook: The company only expects $7.9 billion in revenue this quarter, which is lower than anticipated.
Quote: “While consumer-oriented markets are weaker in the near term, we anticipate a return to growth in the second half of our fiscal year.” - CEO Sanjay Mehrotra.
Early Bird’s Nest Egg Gains: Consumer-oriented markets, including PCs and smartphones, are experiencing soft demand, which is hurting Micron.
An inventory buildup in PC and smartphone supply chains could make things worse.
The memory chip market has also been affected by lower-than-expected demand.
Final Thoughts: Despite these challenges in consumer markets, Micron is experiencing strong growth in data center revenue.
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Notables
Notable Earnings Today: Nike (NYSE: NKE), FedEx (NYSE: FDX), Accenture (NYSE: ACN), Darden Restaurants (NYSE: DRI), Cintas (Nasdaq: CTAS), FactSet (NYSE: FDS), Mission Produce (Nasdaq: AVO), Paychex (Nasdaq: PAYX), Conagra (NYSE: CAG), CarMax (NYSE: KMX), Lamb Weston (NYSE: LW), BlackBerry (NYSE: BB), FuelCell Energy (Nasdaq: FCEL), Scholastic (Nasdaq: SCHL).
Notable IPOs Today: Youxin Technology Ltd Class A Ordinary shares (Nasdaq: YAAS), Leishen Energy Holding Co., Ltd. Ordinary Shares (Nasdaq: LES).
Notable Equity Crowdfunding Campaigns Ending Today: Future Cardia (Wefunder), Paladin Power (Wefunder), YouSolar (StartEngine), Casad Chiropractic Clinic (Honeycomb).
Notable Economic Events Today: GDP (8:30 a.m. ET), Jobless Claims (8:30 a.m. ET), Philadelphia Fed Manufacturing Index (8:30 a.m. ET), Philly Fed Employment (8:30 a.m. ET), Existing Home Sales (10:00 a.m. ET), United States Leading Economic Index (10:00 a.m. ET), TIC Net Long-Term Transactions (4:00 p.m. ET), Fed's Balance Sheet (4:30 p.m. ET).
Lennar's Mortgage Rate Pain
Home construction company Lennar (NYSE: LEN) fell 8.83% in after-hours trading on Wednesday after reporting disappointing financial results.
Financials: Lennar reported earnings of $4.06 per share in the past quarter and revenue of $9.9 billion; both were lower than expected.
Quote: “The housing market that appeared to be improving as the Fed cut short-term interest rates proved to be far more challenging as mortgage rates rose almost 100 basis points…Our results were driven by affordability limitations from higher interest rates.” - Co-CEO Stuart Miller.
Final Thoughts: Lennar’s stock was already negative for the year, and a weaker-than-expected outlook will not improve things.
Palantir’s Army Partnership
Palantir Technologies (Nasdaq: PLTR) expanded its army vantage partnership with a new contract on Wednesday, sending the stock up 1.23% in after-hours trading.
Final Thoughts: Palantir’s stock is up over 330% (wow!) this year.
Trends to Watch
Awful Wednesday, Part 1: Bitcoin Slips to $101K, Altcoins Spiraling on Federal Reserve's Hawkish Tone (CoinDesk)
Awful Wednesday, Part 2: Dow plunges more than 1,100 points and marked its longest losing streak since 1974 (CNN)
Not Effective: US effort to curb China’s and Russia’s access to advanced computer chips ‘inadequate,’ report finds (Associated Press)
Milestone: Grayscale’s Bitcoin Mini Trust ETF tops $1B in net inflows (Cointelegraph)
Plant-Based Crowdfunding: PLNT Burger Launches Equity Crowdfunding Campaign After Opening New Location Near Boston, Massachusetts (Vegconomist)
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