Summary
- The stock has rallied in recent months in an uptrend, but the trend may have been broken if the charts are anything to go by.
- MPWR is set to grow earnings by an impressive 66% in FY2022, but the outlook suggests demand is starting to falter and a downturn is close at hand.
- Multiples for MPWR are higher than most due to its superior growth, which could become a problem if growth fades away.
- Slowing growth, an industry downturn, high multiples, and charts all suggest to stay on the sidelines with the stock likely heading lower.
For further details see:
Monolithic Power Systems May Have Decided A Change In Direction Is Needed