Description
Micron’s gross margin reached 84.6%, with management guiding toward approximately 86%.
But does an extraordinary margin automatically mean the stock is cheap?
Not necessarily.
Even if a company remains highly profitable, a decline in selling prices can cause gross profit to fall dramatically. And for investors, the key question isn’t simply “Is Micron making money?”
It’s whether those profits are higher or lower than what the market already expects.
Slower growth is not the same as falling profits.
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