Sep. 11 at 6:24 PM
Gotta love fintwit. Literally solves his own mystery in the second sentence lol. Clearly the market doesn’t expect a commodity producer like
$MU to enjoy 85% + margins on a substantial go-forward basis… hence why a company like
$DELL trades at higher multiples.
Not saying it will or not (who knows), but the market is clearly expecting supply to catch up to demand at a rate which warrants a heavy discounting to the earnings multiple it trades at. People forget memory makers have posted negative GROSS margins before. Again… it’s a COMMODITY that is CURRENTLY in a severe shortage.
$SPY