On this edition of Stock Movers:
- Micron (MU) shares are up after the largest US maker of computer memory chips, gave an upbeat forecast for the current quarter, helped by demand for artificial intelligence equipment. Fiscal fourth-quarter revenue will be roughly $10.7 billion, the company said in a statement Wednesday. That was well ahead of the $9.89 billion average analyst estimate, sending the shares up in late trading. Micron is seeing increasing demand for components like its high-bandwidth memory, which are used in machines that develop and run AI tools. The company expects continued growth from that market as such software becomes more complex, requiring bigger amounts of memory. The company is also starting to recover from narrower profit margins in the previous quarter.
- Yum! Brands (YUM) shares rose after JPMorgan upgraded the operator of such chains as KFC and Taco Bell to overweight from neutral. Analyst John Ivankoe sees “sustained 4%+ unit growth, strong FCF generation,” and a “pulled-back valuation”.
- Bumble (BMBL) shares jumped after the dating app said it’s cutting almost one-third of its staff, months after founder Whitney Wolfe Herd returned as chief executive officer to overhaul the struggling dating app. The Austin-based company will eliminate around 240 roles globally, or about 30% of its workforce, it said in an exchange filing Wednesday. It expects to achieve as much as $40 million in annual cost savings from the reductions, and plans to “reinvest the substantial majority” of those savings in “strategic initiatives including product and technology development.”
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