All articles tagged with #wdc
Memory and storage stocks SNDK, WDC, and STX fell in early trading after Micron reported strong results but signaled higher capital spending, triggering a sector-wide pullback despite solid AI data-center demand for storage. The move appears sentiment-driven and short-term, with fundamentals for the group remaining intact and long-term AI demand supportive.
SanDisk stock fell about 5.7% on February 17 and slid another ~2% in after-hours trading after Western Digital disclosed plans to exit its entire SanDisk stake by selling 7.51 million shares at $535–$555, raising up to $3.09 billion to reduce debt. SanDisk will not receive any proceeds. The sale aims to swap SanDisk shares for debt held by JPMorgan and Bank of America and comes as AI-driven demand supports NAND/DRAM demand. Analysts show mixed views on SNDK, with a Moderate Buy consensus and an average target around $637.33, implying roughly 8% upside from current levels.
Western Digital (WDC) reported its seventh consecutive quarterly decline in revenue, causing its stock to drop more than 5% in after-hours trading. The company posted a FQ2 2024 adjusted loss per share of 69 cents on revenue of $3.03B, with a 2% year-over-year decline in revenue. The decline was attributed to a 13% year-over-year fall in sales in the cloud business. Despite this, the company's flash revenue increased slightly, while HDD revenue fell. Western Digital also announced plans to split its hard disk drive and flash memory businesses into two separate companies by the second half of 2024.