Micron Technology (MU) shares slide lower this morning after investors express disappointment on the extent of its fourth-quarter earnings beat. Fox Advisors Founder and CEO Steven Fox breaks down the pain points in Micron's bottom line and declining revenue across segments. "We have been cutting numbers for the better part of the year... we finally got to the point where we are not cutting numbers anymore," Fox states. "The bad news is... the sell-side in general and the consensus is thinking too optimistically about the type of rebound Micron is going to have from these levels." Fox also comments on the tech stock winners pivoting harder into AI. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Micron Technology's (MU) fourth quarter results were better than analysts were expecting. The memory and storage company reported a smaller adjusted loss than expected, ($1.07) per share compared to the ($1.18) estimate. Revenue of $4.01 billion topped Street estimates of $3.93 billion. First quarter earnings guidance of ($1.00-$1.14) missed expectations of ($0.96), however, Synovus Trust Senior Portfolio Manager Daniel Morgan points out that the company's revenue guidance was higher than estimates, describing the outlook as "mixed." When it comes to Micron's prospects in AI, Morgan the company does "benefit from AI," however there is not going to be a "Nvidia-like impact from AI on this quarter. I think it's something that is going to play out over a longer period of time." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
A couple of companies that stand to benefit from artificial intelligence are still seeing their share prices fall.