Micron posted earnings that beat expectations. The stock fell. Shocked? You shouldn't be. Earnings reports matter about as much as a weatherman's opinion on Monday when it's already Friday.
Here's what happened. Micron crushed their numbers. Revenue up. Guidance strong. Every fundamental metric screaming "buy me." The stock tanked because some guy in Connecticut decided the AI trade was over. Not based on Micron's business. Based on vibes.
Oil prices dropped too. Financial media called this "good news for inflation." As if the Fed gives a f*ck what oil did last Tuesday when they're setting rates for the next six months. But sure, let's pretend commodities move in a straight line and that correlation equals causation. That's worked great for everyone who bought crude futures in their Robinhood account.
The AI trade cooled. Fantastic phrase. Means nothing. Which AI trade? The semiconductor manufacturers? The data center REITs? The companies that added "AI-powered" to their investor decks and watched their stock jump forty percent? All of it apparently. The whole sector moved together because that's what sectors do when retail traders learn a new word.
Micron's CEO probably spent the week wondering why he bothered showing up to the earnings call. Could've reported record losses and the stock would've done the same thing. Could've fired himself live on CNBC. Wouldn't have mattered. The chart already decided where it was going before he opened his mouth.
Wall Street had a volatile week. Translation: prices moved. They always move. Calling it volatile is like calling water wet. But we need a narrative, so we blame AI and oil and whatever else happened to wiggle that day.
Micron finished in the red despite blockbuster earnings, which tells you everything you need to know about whether reading earnings reports will make you money.
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