Micron's "Robust AI Demand" 🤖

And, H.B. Fuller's "slowing market."

September 26, 2024

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Today is Thursday, September 26, 2024.

The Early Bird Index today is 74.29.

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Micron's "Robust AI Demand" 🤖

Micron (Nasdaq: MU) surged by 14.79% in after-hours trading on Wednesday after the computer memory and data storage company posted strong financial earnings results.

Financials: Micron reported earnings of $1.18 per share in the past quarter and revenue of $7.75 billion; both were better than expected. 

Quote: “Micron delivered 93% year-over-year revenue growth in fiscal Q4, as robust AI demand drove a strong ramp of our data center DRAM products and our industry-leading high bandwidth memory.” - CEO Sanjay Mehrotra.

Outlook: The company anticipates record revenue and higher gross margins in the current quarter.

Background: This is a remarkable turnaround for Micron, which was down 37.58% since June 18.

Early Bird’s Nest Egg Gains: Micron’s summer stock price drop is partly due to the cyclical nature of the memory chip industry, which is prone to supply-and-demand dynamics and steady pricing erosion.

  • Analysts turned bearish toward the memory market, contributing to the stock's decline.

  • Some analysts believe the AI hype has led to more share price overvaluation.

Final Thoughts: Micron's positive results could signal good times for other chip stocks.

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Notables

Notable Earnings Today: Costco Wholesale (Nasdaq: COST), Accenture (NYSE: ACN), BlackBerry (NYSE: BB), TD Synnex (NYSE: SNX), Vail Resorts (NYSE: MTN), CarMax (NYSE: KMX), Jabil (NYSE: JBL), Ispire Technology (Nasdaq: ISPR), REE Automotive (Nasdaq: REE), Scholastic (Nasdaq: SCHL).

Notable IPOs Today: Guardian Pharmacy Services, Inc. (NYSE: GRDN), BKV Corporation (NYSE: BKV), Legacy Education Inc. (NYSE American: LGCY).

Notable Equity Crowdfunding Campaigns Ending Today: Circuit City (Republic), Alleviate (StartEngine), Voodoo Scientific (Wefunder).

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), GDP (8:30 a.m. ET), Durable Goods Orders / Core Durable Goods Orders (8:30 a.m. ET), Pending Home Sales (10:00 a.m. ET), Fed's Balance Sheet (4:30 p.m. ET).

H.B. Fuller's "Slowing Market"

The adhesives manufacturer H.B. Fuller (NYSE: FUL) fell 8.98% in after-hours trading on Wednesday after reporting disappointing financial earnings results.

Financials: H.B. Fuller reported earnings of $1.13 per share in the past quarter and revenue of $918 million; both were lower than expected.

Quote: “We continue to navigate a dynamic macroeconomic environment across our portfolio. Our volume growth during the quarter was impacted by slowing market demand in certain durable goods markets in EA, and we are adjusting our full year outlook accordingly.” - CEO Celeste Mastin.

Final Thoughts: The stock was trending lower in the past month. With a terrible outlook, it’s a rough time for the company.

American Outdoor Brands Adds Share Buyback

American Outdoor Brands (Nasdaq: AOUT) ticked up 3.68% in after-hours trading on Wednesday after rolling out a $10 million stock buyback.

Final Thoughts: The stock is down 2.25% this year.

Balancing Innovation With Economic Policy: Ethereum's Changing Landscape (CoinDesk)

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