Treating memory chips like Microsoft's sticky recurring enterprise cloud monopoly is a dangerous assumption as memory chips are highly volatile commodities of the tech world.
Micron's eye popping 84.6% gross margin is purely because average DRAM selling prices skyrocketed over 60%. Price driven earnings are fast to arrive & can be just as fast to evaporate when supply catches up.
A good strategy is to take some profits on Micron & let the remainder ride with a stop loss set 10% below its peak. That way you have a massive win on the trade.
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- zumaΒ·09-22 06:39thx1Report