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.
Shares of semiconductor company Micron Technology (MU) slide in pre-market trading, contributing to the ongoing sell-off in tech stocks that has now brought the S&P 500 technology sector into official correction territory. Investors were disappointed in Micron's fourth-quarter earnings reported yesterday after the close despite beating revenue estimates and narrowing losses in adjusted earnings per share. While the technology sector faces challenges, Michael Arone, Chief Investment Strategist for State Street Global Advisors' U.S. SPDR Business, sees opportunities for investors in the energy sector amid rising oil prices, though it might not be beneficial to the consumer. "I don't think [oil] is a market catalyst — on one hand, I think it's great for energy companies, energy service companies, and the like, which is why we like it from an investment standpoint," Arone tells Yahoo Finance, adding the caveat: "I think that really has a negative impact on consumer spending potentially on businesses... I do think that that poses a challenge going forward for the economy 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.