Western Digital stock rallies, and brings Micron along for the ride
By Wallace Witkowski
Published: Jan 25, 2019 2:44 p.m. ET
While flash memory glut persists and hurt Western Digital earnings, forecasts are more reasonable, analysts say
Western Digital Corp. shares rallied Friday following a drop late Thursday as the data storage device company reported an earnings miss and cut its outlook but provided a light at the end of the tunnel for the memory-chip industry.
Western Digital WDC, +6.63% shares rallied 6.8% to $42.85 Friday after touching an intraday high of $47.95. Late Thursday, shares of Western Digital fell in after-hours activity following the release of earnings. For the year, Western Digital shares are up 16.1%, compared with a 6.3% gain in the S&P 500 SPX, +0.87% and a 7.9% rise in the tech-heavy Nasdaq Composite Index COMP, +1.25% .
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As BTIG analyst Edward Parker said in a Friday note, “we think this is the last numbers cut, and thus a catalyst for stock reversal.”
“Similar to [Micron Technology Inc.]’s results a month ago, WDC provided a quarter that many long-term investors wanted to hear,” Cowen’s Karl Ackerman wrote.
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