Why Sandisk (SNDK) and Western Digital (WDC) crashed 10% and what it means for bitcoin
CoinDesk • • business
Key Points:
- Sandisk and Western Digital, major players in AI storage, reported strong quarterly earnings but saw their stocks drop 10% in pre-market trading due to disappointing guidance and high investor expectations.
- Sandisk posted record Q4 revenue of $8.97 billion and non-GAAP EPS of $39.25, while Western Digital's revenue rose 44% year-over-year to $3.75 billion with a gross margin of 54.4%.
- Despite solid results, Sandisk's Q1 revenue and EPS guidance fell short of analyst estimates, and Western Digital's outlook, though positive, failed to impress after a significant recent stock run-up.
- Over the past year, Sandisk and Western Digital shares surged more than 3,000% and 550% respectively, fueled by the AI boom, but both remain about 50% below their all-time highs.
- Sandisk announced a $14 billion share buyback program, increasing total authorization to $15.5 billion, while signs of a market rotation are emerging as gold prices rise and bitcoin maintains strength despite recent exploits.
