$Micron Technology (MU.US)$ The following is a naive questio...
The following is a naive question from someone who is not in the industry. I don't have the knowledge to clarify it because I'm not in the industry.
Ultimately, today's BNP Paribas bank group company's rating department has given an unusually bearish rating, which is rarely seen, and has blown away Micron's market capitalization by more than 6% compared to the previous day. When it comes to such a rating job at a super huge and historic financial conglomerate, I think they should definitely simulate in advance how much impact it will have on the market, how much the stock price will drop. I don't think they would allow the hired analysts to announce their ratings freely without any checks. With this much impact, the announcement should have been made with a considerable level of determination.
So, naturally, there are investors who bought Micron stocks from BNP Paribas Bank Group's securities company all over the world, so today there might be a storm of anger and condemnation from wealthy shareholders who are saying, "What have you done!!" Of course, this seems to be the case in Japan, but...
And what is even more confusing for non-industry people is that when I looked it up, the investment company of Paribas Group owns about 4.5 million shares of Micron stock. That investment company holds a wide range of semiconductor stocks with a focus on Nvidia, and Micron is ranked 24th, so it's hard to determine if it is important, but it is a considerable amount of money. And recently they have been increasing their holdings. With such a bearish rating, I wonder if other companies in the same group, who own a lot of these stocks, might be angry and say, 'What have you done?!' Or maybe it doesn't matter because they lend the stocks to brokerage firms for short selling, so the short-term stock price doesn't matter???
Thinking this way, for individual analysts who engage purely in criticism without vested interests, it may make sense. But for Paribas Bank Group, regardless of how analytical and conviction-driven the rating may be, what benefit is there in announcing such a bearish rating? Do they just want to disclose the truth they have uncovered, really? Are they that pure???
Is there a significant benefit to the stock price falling because of the existence of short selling... Of course, it is legal.
I apologize for the long message.
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☆ラジエル★ : The market is a thing that does not deposit money in anxiety. It also reacts sensitively to the statements of analysts.
80% of people still recommend buying MU, but there may also be investors who think it is a good time to buy now.
Anyway, in the end, it is the performance and guidance. Let's watch September 25th. The guidance is clumsy, but there is no choice but to show it in actual performance numbers.
Marvin1986 OP : Thank you for your comment, Mr. Radiel. Yes! It seems that there is only one sell recommendation analyst. I believe in the 25th!