Prices are still well above actual costs. Micron's net income last quarter was still 6.3b. The only "negative" affect on these companies during this down turn is their stock prices in large part due to less cash for stock buybacks.
Have you looked at the numbers? They are all still very profitable. Right now the prices are still well above costs. They just aren't making a ludicrously high 50%+ net income anymore per quarter (that is net income not gross).
https://finance.yahoo.com/quote/MU/financials?p=MU What the heck are you talking about? NET INCOME not even 600mil last Q, looks about the same this Q. Heck TOTAL revenue for last Q was only 4.5B. Who's Q report are you reading? This is a massive change from 3Q's ago at 3.2B NET INCOME on almost 8B revenue.
They are currently getting killed vs. 1yr ago, so, not sure what you're on about here, you seem confused. But it is 5am for me, so maybe I'm just out of it...LOL. 560mil is still money, but we are not talking billions here, which is why the stock is at $50 instead of $64.
Ahh, I see what you did, you look at the full year which is 6.3B. Wow, ok, you are off by like 90%...ROFL. No the affect on the company is a ~75% drop in NET INCOME. Too early to do math, but you get the point. VS 12-18mo ago, this is terrible. But the have slowed the drops, so I suspect they'll be break even to 1B (likely right in the middle). Which to me would prompt selling off some unless they say something great about coming Q. Any hint of bad guidance it will drop a few bucks for sure. You are miles from 3.2-4.5B NET INCOME Q's right now. They need to start going back to billions NET INCOME for $65 again, and It will require 3-4 of those in a row to blow by it to $100 as cars and AI etc all kick things up a notch (along with phones/tablets finally upping everything mem wise) around say 2021. The stock is cheap today if you're a longer term buyer (1-2yrs, you'll laugh). Did my part for my stock and bought multiple MU based SSD's and mem sticks for xmas :) (er, I'm counting HP EX920 in there too, it uses MU mem).
It depends a lot on Smartphones sales, as we have seen what a 5% Smartphone target miss will do to NAND prices. At least all these companies are profitable right now. And they ( Samsung ) are also investing into new tech like EUV. We aren't far away from $100 2TB SSD.
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plopke - Wednesday, December 4, 2019 - link
For people like me who forgot who Kioxia is , they used to be the Thosiba Memory Cooperation.Pro-competition - Wednesday, December 4, 2019 - link
Toshiba*RSAUser - Monday, December 9, 2019 - link
Thanks, was about to Google it.ABR - Wednesday, December 4, 2019 - link
Everyone wants less supply but no one wants to cut production and lose market share. Sooner or later there's going to be some exits or consolidation.limitedaccess - Wednesday, December 4, 2019 - link
Prices are still well above actual costs. Micron's net income last quarter was still 6.3b. The only "negative" affect on these companies during this down turn is their stock prices in large part due to less cash for stock buybacks.scineram - Thursday, December 5, 2019 - link
Why the fuck you sell at cost for no profit?limitedaccess - Thursday, December 5, 2019 - link
Have you looked at the numbers? They are all still very profitable. Right now the prices are still well above costs. They just aren't making a ludicrously high 50%+ net income anymore per quarter (that is net income not gross).TheJian - Thursday, December 12, 2019 - link
https://finance.yahoo.com/quote/MU/financials?p=MUWhat the heck are you talking about? NET INCOME not even 600mil last Q, looks about the same this Q. Heck TOTAL revenue for last Q was only 4.5B. Who's Q report are you reading? This is a massive change from 3Q's ago at 3.2B NET INCOME on almost 8B revenue.
They are currently getting killed vs. 1yr ago, so, not sure what you're on about here, you seem confused. But it is 5am for me, so maybe I'm just out of it...LOL. 560mil is still money, but we are not talking billions here, which is why the stock is at $50 instead of $64.
Ahh, I see what you did, you look at the full year which is 6.3B. Wow, ok, you are off by like 90%...ROFL. No the affect on the company is a ~75% drop in NET INCOME. Too early to do math, but you get the point. VS 12-18mo ago, this is terrible. But the have slowed the drops, so I suspect they'll be break even to 1B (likely right in the middle). Which to me would prompt selling off some unless they say something great about coming Q. Any hint of bad guidance it will drop a few bucks for sure. You are miles from 3.2-4.5B NET INCOME Q's right now. They need to start going back to billions NET INCOME for $65 again, and It will require 3-4 of those in a row to blow by it to $100 as cars and AI etc all kick things up a notch (along with phones/tablets finally upping everything mem wise) around say 2021. The stock is cheap today if you're a longer term buyer (1-2yrs, you'll laugh). Did my part for my stock and bought multiple MU based SSD's and mem sticks for xmas :) (er, I'm counting HP EX920 in there too, it uses MU mem).
eek2121 - Wednesday, December 4, 2019 - link
That may not work all that well: we are starting to see new players enter the market.China, ironically enough, has raised a huge stink about price fixing, to the point that they are funding new startups.
ksec - Wednesday, December 4, 2019 - link
It depends a lot on Smartphones sales, as we have seen what a 5% Smartphone target miss will do to NAND prices. At least all these companies are profitable right now. And they ( Samsung ) are also investing into new tech like EUV. We aren't far away from $100 2TB SSD.