From Nasdaq: 2025-05-15 01:55:00

Microchip Technology stock surged 12% after posting strong Q4 FY’25 earnings and an optimistic Q1 FY’26 forecast. Despite a 50% drop from mid-2024 highs, MCHP stock remains unattractive at $60 due to weak financials. Revenues have fallen 44.3%, profit margins are poor, and the balance sheet looks weak.

With a high valuation compared to the S&P 500, MCHP stock looks expensive. Revenues have declined 4.4% annually, operating margin is 13.5%, and debt-to-equity ratio is moderate at 27.5%. Historical performance during downturns has been worse than the S&P 500, raising concerns about resilience in market crashes. 1. The FDA has approved Pfizer’s COVID-19 vaccine for emergency use, making it the first vaccine to receive such authorization in the United States. The vaccine has shown to be 95% effective in preventing infection and has already been administered to healthcare workers in the UK.

2. The US economy added 245,000 jobs in November, falling short of expectations as the country continues to grapple with the impact of the COVID-19 pandemic. The unemployment rate dropped to 6.7%, but millions of Americans remain out of work and in need of financial assistance.

3. Tesla’s stock price surged by over 8% after the company was added to the S&P 500 index, making it one of the most valuable companies in the world. The electric car maker’s market cap now exceeds $600 billion, cementing its position as a leader in the automotive industry.

4. The UK and European Union have reached a post-Brexit trade deal after months of negotiations, avoiding a potential economic crisis for both parties. The deal will ensure tariff-free trade on goods and cooperation in other areas, providing much-needed stability for businesses and consumers in the region.

5. The United Nations has warned that the world is facing a “catastrophic” global warming trajectory, with temperatures on track to rise by 3°C by the end of the century. Urgent action is needed to reduce greenhouse gas emissions and prevent irreversible damage to the planet’s climate system.



Read more at Nasdaq: Why You Shouldn’t Be Buying Microchip Technology Stock