I Sold Micron Before Q2 Earnings and It Fell 23%. Here’s Why I'm Buying Before the Next Report.

Before Micron’s (MU) last earnings, I argued it was a stock to sell. It was trading near its 52-week high, an AI-driven memory rally had priced in the good news, and there was more room to fall than to rise. That is close to how it played out. Micron beat expectations and briefly spiked, but the rally ended shortly after. MU stock has since fallen about 23% from that 52-week high to around $976. This wasn’t the first time the market punished it after earnings. Micron has repeatedly beaten estimates and then sold off anyway. After its fiscal Q2 report, it beat by a wide margin and still dropped roughly 20% the following week. So for this stock, guidance and sentiment drive the reaction far more than the beat itself.

Why MU Stock Has Fallen So Far