Benzinga·2025-09-24 15:24Core Insights - Micron Technology (MU) stock experienced a significant pullback despite reporting strong earnings, indicating that the positive news may have been priced in ahead of time [9] - The stock peaked at $174.92 immediately after the earnings release but has since retreated to $164.80, reflecting a $10 decline from its after-hours high [9] - The article draws parallels between current market conditions and historical events, particularly referencing Fed Chair Powell's warning about high stock valuations and the potential for a repeat of past market bubbles [9] Summary by Sections Micron Technology (MU) Stock Performance - MU stock was reported to be overbought prior to the earnings release, making it susceptible to a pullback [9] - Following the earnings announcement, aggressive buying from the momo crowd drove the stock price up to $174.92 before it fell back to $164.80 [9] Market Context and Historical Reference - The article references the "irrational exuberance" speech by former Fed Chairman Alan Greenspan in 1996, suggesting that current market conditions may mirror those of the past [9] - Historical context is provided with the performance of the Nikkei 225, which saw a significant drop after Greenspan's warning, indicating potential risks in the current market [9] Investment Strategy Recommendations - Investors are advised to consider trimming tactical positions and booking partial profits while holding long-term strategic positions [5] - The article emphasizes the importance of monitoring money flows in major stocks and ETFs to gain an investment edge [8]