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Taking Stock With Tech: Micron Recovers On Industry Data Whereas Snap Inc. Releases New Features

Alex Cho profile picture
Alex Cho


  • Micron recovers on promising semiconductor data, though it’s arguably undervalued relative to other tech sub-sectors.
  • Snap Inc. released new Snapchat features on Wednesday, which has some near-term consequence to advertisers.
  • SIA (Semiconductor Industry Association) released May growth figures, data summary is provided via RBC Capital Markets.
  • IT investment likely skewing towards analytics, modernization, cloud and data security according to a survey from Deloitte.
  • Valuations among FANG stocks driven by fund managers who are overweight relative to other stocks suggesting near-term risk to valuations.

In our fifth edition of Taking Stock with Tech, we cover tech equity themes that’s inclusive of large/mid-cap news, and industry data points. Though we can easily acknowledge that we cannot cover every equity theme, we believe that these insights will prove useful.

Micron Inc. may have found support following Earnings Announcement

Micron (NASDAQ:MU) took a beating in the past couple of sessions following what has been unanimously perceived as a good quarterly report.

Source: TC2000

The stock bounced off the 50-Day Moving Average, and traded upwards on positive SIA (Semiconductor Industry Association) data, for the month of May. The SIA data (which we will discuss in more detail) implies positive read-through for NAND and DRAM specifically, which grew 48% and 60% y/y, respectively.

Given the positive industry data points, and the stock trading at a depressed forward P/E multiple of 4.8x, one may wonder if now is an opportune time to pick up Micron shares.

While we acknowledge that Micron’s multiple probably isn’t justified, and is undervalued. Investors must concede that the stock exhibits a lot of volatility precisely because it trades at a low-multiple, exhibited rapid sales/earnings growth following a cyclical trough. It’s the negative perception of cyclical stocks that drive valuation ranges, and it’s why we’re not surprised by the pull-back following its 240% rally from its 52-week low.

We think investors should buy up shares opportunistically. We will reveal exclusive research on Micron to our premium research subscribers this week.

Snap Inc. unveils new chat features

Snap Inc. (NYSE:SNAP) continues to add more features to Snapchat, as we move beyond the simplistic design interface that has made the app popular among millennials.

Snapchat introduced “Paper Clips,” which allows users to share outbound links from the app. Of course, it’s worth noting that Snapchat introduced a preview function, so users don’t click

This article was written by

Alex Cho profile picture
Best tech/finance blogger on TipRanks. Alex Cho is ranked 7th among all financial bloggers, with a sector focus of technology stocks. The research he publishes captures the long-term growth potential of tech franchises, and market valuation. His research recommendations over the span of five-years has averaged into an annualized return of 19.3% across 392 ratings of which 66% were successful. Alex Cho has been publishing articles on Seeking Alpha as a contributing author for five-years. Over those five-years he has also published for TheMotleyFool, TheStreet, WhoTrades, Benzinga and Amigobulls. Over his years of publishing, Alex Cho has been an indispensable source of information for an investment minded audience, which is why his lifetime viewership has exceeded ten million in total since 2012, across various media platforms. Furthermore, he’s frequently cited in various local business journals across the United States, and is frequently tagged with the “in-depth” designation on Google News for his public articles. The quality of his research is well known, and is well-respected which is why he’s frequently cited by other authors, journalists, bloggers and experts. Alex Cho was a former founding partner of Alexander & Cohen Capital Management, has worked as a consultant for mid-stage tech companies looking to raise capital or form an exit strategy, with the most recent consultation billed to a client that was generating revenue of $10 million+ in the web domain/registrar segment.Alex Cho is frequently invited to interview members of management at various Fortune 500 tech companies’ due to his outstanding media credentials, and credibility. Furthermore, he frequently attends various tech media events at the request of the event organizers. Alex Cho has a great relationship with Wall Street and Silicon Valley, as well. In the Venture Capital Space, he has sources that are inclusive of VC Partners, and independent research from PitchBook, Mercury Data, eMarketer, MergermarketGroup, and so forth. Anyone facing the public with investment related material needs quality sources, which should be inclusive of insights from Private Equity and various sell-side institutions and debt rating agencies as well (Standard & Poor’s, Fitch, & Moody’s).Alex Cho publishes with the support of Bank of America Merrill Lynch, Morgan Stanley Americas, Royal Bank of Canada Capital Markets, United Bank of Switzerland AG, Barclays Americas, Goldman Sachs, J.P. Morgan, Credit Suisse AG, PiperJaffray, Wedbush Securities, Oppenheimer & Co., Nomura Securities, BMO Capital Markets, Raymond James, Pacific Crest, SunTrust, Mizuho Securities, Deutsche Bank and Canaccord Genuity. Alex Cho attended ASU via the MAPP program with a 3.76 GPA in business-finance. The genius behind Cho has less to do with his academic accomplishments, but rather his ability to navigate, adapt, and improve the quality of his work through all the activities he has engaged in both on and away from Seeking Alpha.In the past year, Alex Cho has launched a new marketplace service referred to as Cho’s Investment Research. To learn more about this service, or to receive article notifications, be sure sure to subscribe. We provide frequent updates via our Blog Posts, which goes out to our subscribers.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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