Why Micron Technology Stock Dropped 5% Today

Shares of computer memory maker Micro Technology (NASDAQ: MU) dropped to close 4.6% lower Thursday. You can probably blame the analysts at Needham & Co. for that -- and here's the strangest thing: Needham actually likes Micron stock.

Early this morning, Needham reiterated its "buy" rating on Micron shares, and its $70 price target, implying there's nearly 44% in the stock. Problem is, while insisting the stock remains a buy, Needham also tweaked its estimates for the company's near-term earnings -- lower.

Data center and end-market sales, warned Needham, are looking likely to revert to the mean after enjoying a COVID-19 boost from stay-at-home workers accessing their workplaces remotely. For the balance of this year, Needham predicts "inventory burn" as customers work through memory that they've accumulated to deal with the surge of demand -- and scale back new purchases from Micron.

Source Fool.com