Micron Technology's stock drop after hours can be attributed to several factors:
- Market Downtrend: The broader market experienced a downturn, with the Nasdaq Composite losing 2.1% and the S&P 500 falling by 0.9%. This overall market sentiment likely influenced Micron's stock price.
- Netflix Earnings Report: Netflix reported mixed results, providing underwhelming sales guidance for the full year and guiding for growth to decelerate in the second half of the year. This news contributed to concerns about the tech sector and may have affected investor sentiment towards Micron.
- Escalating Tension in the Middle East: There was news of escalating tension between Israel and Iran, which raised concerns about potential disruptions to business supply chains, especially in the Middle East. This geopolitical uncertainty can lead to volatility in the stock market, including for Micron.
- Inflation Concerns: The March 2024 CPI report revealed that inflation came in slightly hotter than expected. This, along with Fed Chair Jerome Powell's comments indicating a longer-than-expected timeline for achieving confidence on policy rates, suggests that the Fed might not lower rates as anticipated in 2024. This monetary policy outlook can impact stock prices, particularly in the tech sector.
- Micron-Specific Factors: There was a downgrade of Micron's stock by one analyst and an upgrade by 21 analysts over the last month. Such analyst actions can lead to sudden stock price adjustments.
These factors, both macroeconomic and company-specific, contribute to the drop in Micron's stock price after hours. Investors may have reacted to these developments, leading to a decline in the stock's value.
6/26/2024 08:28pm
