David Einhorn’s Remarks Spark Rally In Micron Technology Inc. (NASDAQ:MU)
Micron Technology Inc. (NASDAQ:MU)’s stock gained 6.33% on Thursday and closed at $19.99. Considering its previous closing, the stock has gained more than 210% year to date, almost 8 times the S&P 500 (INDEXSP:.INX)’s 25.92% gains.
The activist investor David Einhorn and the President of Greenlight Capital, Inc. talked about new long position his firm has taken in Micron Technology, Inc. (NASDAQ:MU) during the quarter. Einhorn was speaking at the Robin Hood Investors Conference and his mentions were leaked via tweet on the popular micro-blogging site.
Later while speaking on CNBC, Einhorn expressed his bet on Micron to be favored by the long term prospects driven by consolidation in the DRAM memory market. He also remarked about the emerging uses for DRAM chips in advanced devices like smartphones and videogame consoles.
In a latest note, Susquehanna yesterday raised the price target for the shares of Micron Technology, Inc. (NASDAQ:MU)’s common stock from $14 to $18. TheStreet Ratings team maintains ‘Buy’ rating on the stock given the company’s attractive valuation levels, impressive earnings per share growth and compelling growth in net income.
Bob Lang, technical expert with TheStreet explained that Micron has recently broke out from significant resistance at $18.5 and shows a classic bullish chart pattern. Bob also tipped that when the big money is investing in stocks, it is wise to make note and may be “ride their coat tails.”
The other Tech Gainer
Pandora Media Inc. (NYSE:P)’s stock gained 4.36% in yesterday’s trade, ahead of its 3Q14 earnings release scheduled after the closing bell. Later the company posted 50% growth in its 3Q14 revenue to $180.4 million and a loss of $1.7 million. Pandora reported decline in its active listeners to 70.9 million compared to 71.2 million in the preceding quarter. However on a year over year basis, the active listeners’ base increased 20%.