Share Price

Aided by a sharp spike in memory chip sales and higher margin realization, last week, Micron Technology Inc. ( NASDAQ: MU ) reported fiscal 2017 first quarter results that beat analysts’ expectations.

The positive results and optimistic management about the growth outlook pushed the stock price to a high of $ 23.61.

However, in the past few days, earnings posting has pushed the stock down to the $ 22.30 level. For the reasons listed below, we expect the decline to continue until the stock hits levels of around $ 21.

The Boise, Idaho-based company BDSwiss Test and Overview reported first quarter revenue of $ 3.97 billion, up $ 3.35 billion in the first quarter of fiscal 2016 and better than analysts’ estimates of $ 3.95 billion.