Does Micron (MU) Have an Economic Moat at All?

What happened: Micron Technology (NASDAQ:MU) closed at $931.24 on October 15, and the article questions whether the memory maker has a durable economic moat or is simply in a strong point of an old cycle. Key numbers: Closed at $931.24 on October 15. Why it matters: The article argues the barrier is the cost of building a memory plant and the small number of suppliers, which protects the industry rather than any one company. It says the single-digit forward multiple suggests the market does not expect these earnings to survive the cycle. Market: -5.6% today ($878.84), +178.7% YTD, 0.9x vol — as of 23:45 UTC

Micron Technology (NASDAQ:MU) closed at $931.24 on October 15, and the article questions whether the memory maker has a durable economic moat or is simply in a strong point of an old cycle.

The article argues the barrier is the cost of building a memory plant and the small number of suppliers, which protects the industry rather than any one company. It says the single-digit forward multiple suggests the market does not expect these earnings to survive the cycle. Market: -5.6% today ($878.84), +178.7% YTD, 0.9x vol — as of 23:45 UTC