I realize this is my second MU trade idea in a month, but after coming back to it then, everything I see, hear or read about MU compels me to keep trading it, even into earnings, which I don't normally like to do. Memory prices have tripled since 2023, and prices and demand they are now seeing are so high that MU is abandoning its consumer memory business completely in order to be able to fulfill ...
I realize this is my second MU trade idea in a month, but after coming back to it then, everything I see, hear or read about MU compels me to keep trading it, even into earnings, which I don't normally like to do. Memory prices have tripled since 2023, and prices and demand they are now seeing are so high that MU is abandoning its consumer memory business completely in order to be able to fulfill demand for data center memory. Margins in that business are about 40% higher than consumer margins, so moving to that business full time, at least as long the AI boom lasts (which I happen to think is nowhere near ending) promises to increase both revenues AND convert more of their revenue to profit given that margins on data center related products are in the 50-60% range vs. the 30-40% range of their consumer products. In addition to those fundamentals, I believe MU is currently the only memory supplier that produces in the US, giving them a huge pricing/margin advantage vs. overseas producers for US customers. This convinced me that not only will their quarter be an excellent one, but forward guidance will likely be excellent. If I were a holder of stocks rather than a trader, this one would be near the top of my list right now. But alas, my game is hit and run, smash and grab, and MU has been stellar for this game as well this year. Given that the stock has risen 150% or so this year, that's not really worth bragging about, but I will definitely not apologize for chasing low hanging fruit. The point of what I do is about putting the odds in my favor, and MU checks pretty much all the boxes there, including currently trading above its 20, 50 and 200d MAs. I won't rehash the results I've summarized in the text box on the chart here - they speak for themselves. Those are compelling numbers, even for what I do, and that's why I will keep coming back for another squeeze here. That's not to say there isn't risk. In my recent AAPL idea, I warned that I didn't like the market r...
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JHVEPhoto/iStock Editorial via Getty Images In July 2025, I published my last article about DexCom Inc. ( DXCM ), and in the last two articles, I rated the stock as a "Hold" after I saw DexCom as a "Sell" and overvalued. In the conclusion of my last article, I wrote: DexCom certainly has several growth opportunities in the years to come and I assume that the business will be able to grow in the do...
JHVEPhoto/iStock Editorial via Getty Images In July 2025, I published my last article about DexCom Inc. ( DXCM ), and in the last two articles, I rated the stock as a "Hold" after I saw DexCom as a "Sell" and overvalued. In the conclusion of my last article, I wrote: DexCom certainly has several growth opportunities in the years to come and I assume that the business will be able to grow in the double-digits for several years. However, I have my doubts if the company can grow its bottom line 20% annually for the next ten years and DexCom would need to achieve this growth rate consistently over the next decade to be fairly valued. We could argue that the hardware sales are close to zero now and sensor sales grow with a high pace, which is positive. On the other hand, DexCom is also trading for a higher stock price now making it still a "Hold" in my opinion as the stock remains overvalued and I still see downside risk and very limited upside potential for the next few years. And since my last article was published, the stock continued to decline and lost about 15% in value once again. DexCom has been declining since its all-time high in 2021 and has lost as much as 66% from its previous all-time high. Data by YCharts In the following article, we will look at DexCom once again and try to answer the question of whether the company (and stock) might be a good investment opportunity now. The combination of an improved business in the past ten months and a 15% lower stock price might make the stock interesting right now. I will argue that DexCom might be slightly undervalued at this point due to the lower stock price and growth potential for DexCom due to increased coverage in the United States and international expansion. Quarterly Results We start by looking at the first quarter results for fiscal 2026, which were reported on April 30, 2026. The company not only beat analysts' expectations for revenue as well as earnings per share, but the company also grew its metrics a...