November 3 and $SNDK Is Still Weak. Here’s the Latest Update.
Sandisk is trying to recover in pre-market, but yesterday’s selloff changed the mood fast.
The newest pressure came after Fox Advisors downgraded Sandisk from Overweight to Equal-Weight on November 2.
What makes this interesting is that Sandisk’s actual business numbers are still strong.
Its latest quarter delivered $11.0 billion in revenue, up 23% from the previous quarter, while data-center revenue jumped 61%. Management also expects next-quarter revenue between $12.2 billion and $12.6 billion.
Sandisk also announced an 8-for-1 stock split, with split-adjusted trading expected to begin November 20.
So this is not really a weak earnings story.
The bigger issue is expectations.
After such a massive run, traders are becoming much more sensitive to analyst downgrades and any sign that the memory boom could cool.
$WDC is also worth watching because it remains closely connected to the broader data-storage and memory sector. If storage names stay weak, sentiment around SNDK could stay under pressure too.
Strong business, but very high expectations.
That’s the real battle around SNDK right now 👀
Trade $SNDK here 👇
Sandisk is trying to recover in pre-market, but yesterday’s selloff changed the mood fast.
The newest pressure came after Fox Advisors downgraded Sandisk from Overweight to Equal-Weight on November 2.
What makes this interesting is that Sandisk’s actual business numbers are still strong.
Its latest quarter delivered $11.0 billion in revenue, up 23% from the previous quarter, while data-center revenue jumped 61%. Management also expects next-quarter revenue between $12.2 billion and $12.6 billion.
Sandisk also announced an 8-for-1 stock split, with split-adjusted trading expected to begin November 20.
So this is not really a weak earnings story.
The bigger issue is expectations.
After such a massive run, traders are becoming much more sensitive to analyst downgrades and any sign that the memory boom could cool.
$WDC is also worth watching because it remains closely connected to the broader data-storage and memory sector. If storage names stay weak, sentiment around SNDK could stay under pressure too.
Strong business, but very high expectations.
That’s the real battle around SNDK right now 👀
Trade $SNDK here 👇
