Jim Cramer has provided his latest thoughts on tech-companies 3D Systems Corporation (NYSE:DDD) and Micron Technology, Inc. (NASDAQ:MU) in a television segment on CNBC. According to Cramer, 3D Systems Corporation (NYSE:DDD) will bounce, after witnessing its stock tumble 45% year-to-date.The company released today its second-quarter earnings that fell short of expectations, following which the stock fell 10%. Just before the earnings call the company announced the acquisition of Simbionix, a global leader in 3D surgical products. However, the acquisition has not helped the company avert a collapse in its stock, as investors are getting impatient and want to see more earnings.
Nevertheless, the stock will recover eventually, as short bets run out of steam, argues Cramer.
“The stock is going to bounce back, because it is heavily shorted and they have to cover, but the 3D Systems is going to be the big negative public name today,” commented Cramer.
By contrast, Micron Technology, Inc. (NASDAQ:MU) stock is expected to go down, as the semiconductor manufacturer will see a drop in orders. Cramer says there are several factors at play. First, Samsung is increasing its production of DRAMs, a product from which Micron Technology, Inc. (NASDAQ:MU) takes a large chunk of its revenue. Second, supply is rising faster than demand. Accordingly, the price of DRAMs will go down, eating from the company’s profits.
Micron Technology, Inc. (NASDAQ:MU)’s stock dropped today 4.50% amid a broad global sell-off. Tech companies have been hit the most with the NASDAQ Composite falling by over 1.50%.
“There is a lot of negativity in the tech world today, a lot of negativity everywhere” concludes Cramer.
Disclosure: none
Suggested Articles:
