Stock Market Today: Nasdaq Falls 580 Points; Micron, Sandisk Are Big Losers (Live Coverage)
Nasdaq dropped 580 points with memory chip names Micron and Sandisk among the hardest-hit stocks in today's broad selloff. The divergence in fundamentals — MU posting 49% revenue growth vs. SNDK still burning cash — sets up a relative-value question within the memory space.
What happened
Nasdaq dropped 580 points with memory chip names Micron and Sandisk among the hardest-hit stocks in today's broad selloff.
The read · Jun 23
With MU and SNDK both hit in today's Nasdaq rout, the question is whether their fundamentally different earnings profiles — MU profitable and growing 49% vs.
Wrong if
If the selloff signals a genuine memory-cycle demand downturn, both names fall together and MU's premium fundamentals don't protect the long leg; a sector-wide inventory correction could compress the spread rather than widen it.
CoverageSource: Investor's Business Daily · Published here TUE, JUN 23 · 4:33 PM ET · the only report in this recordHow this is decided →
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The story1 min read
The Nasdaq shed roughly 580 points in a broad risk-off session, with memory chip names leading declines. Micron (MU) has been growing revenue at ~49% YoY with 39.8% gross margins and $7.59 diluted EPS, suggesting the selloff may be macro-driven rather than fundamental deterioration. Sandisk (SNDK), by contrast, carries a -22.3% net margin and -$11.32 diluted EPS, meaning it enters any drawdown with far less balance-sheet cushion.
The key question is whether today's move is indiscriminate forced selling across memory or a more discerning re-rating of weaker names. If the selloff is macro-driven, MU's strong fundamentals provide a recovery anchor; if it signals a broader memory cycle turn, SNDK's negative earnings make it the more vulnerable leg. Watch whether MU holds recent technical support and how broad credit/risk spreads behave into the close.
The read, in full
With MU and SNDK both hit in today's Nasdaq rout, the question is whether their fundamentally different earnings profiles — MU profitable and growing 49% vs. SNDK still deeply loss-making — will reassert themselves on the bounce or compress together in a cycle downturn.
Why it matters
MU reported 49% YoY revenue growth, 39.8% gross margins, and positive diluted EPS of $7.59 in its latest fiscal year — fundamentals that sharply outpace SNDK's loss-making profile (-$11.32 diluted EPS, -22.3% net margin). In broad selloffs, indiscriminate selling often over-punishes the stronger name, creating a mean-reversion spread opportunity. Going long MU / short SNDK captures the fundamental divergence while hedging out macro and sector-level memory exposure.
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The read above, as written. kept as written · closes shown from JUN 24 on
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Since this story · named here, equal weight · 1D EOD-3.7%
JUN 24 · first close after publicationSEP 4
Price context does not establish that the story caused the move.
▲ The case it holds
MU's 49% revenue growth and $7.59 EPS with near-40% gross margins suggest today's drop is macro noise rather than fundamental deterioration, creating a potential spread-widening opportunity as the market eventually reprices quality within the memory segment.
▼ The case it breaks
A macro-driven or memory-cycle-driven selloff would hit MU nearly as hard as SNDK — MU's own guidance has been sensitive to DRAM/NAND pricing cycles, and any forward demand warning could quickly close the fundamental gap that underpins the pair trade.
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This page is kept as it was written on Jun 23. Later coverage joins it only when the company and catalyst evidence match, and what the stock did is shown from licensed end-of-day closes — never re-graded, never backdated. The judgment is yours.
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