Could Micron Stock Reach $2,000? 1 Reason to Believe It -- and 1 Reason to Be Skeptical
The $2,000 figure sounds outrageous -- until you consider what Micron is earning today. But there's a catch.
Overview
Micron Technology (NASDAQ: MU) stock has already delivered the kind of gains that investors dream about. In just one year, the stock was up by more than 500%.
Now comes the harder question: Could Micron stock reach $2,000? With the shares recently trading around $1,086 (as of this writing), that would require another roughly 84% gain. It would also put Micron's market capitalization at more than $2 trillion.
Details
At first, that sounds almost absurd. But the interesting part is that the argument doesn't require Micron to reach some wildly optimistic valuation. It comes down to one question: Can Micron turn today's extraordinary earnings into a much higher long-term profit base?
Source
Originally published at www.fool.com.