Seagate Technology PLC (NASDAQ:STX) shares were tumbling down to new low levels during a high volume Thursday morning session, following the disk-drive maker lowered its fiscal third-quarter revenue and profit outlook. The stock plunged 19%, the largest one-day percentage drop since it plunged 24% on Jan. 22, 2009.
The most pathetic performance, since the firm went public in Dec. 2002, was a 24.5% decline on Oct. 22, 2003. Trading volume hit 28 million shares during the initial 90 minutes of Thursday’s session, or almost six times the complete day average over the last 30 days of 4.7 million shares, as per reported by FactSet. The firm lowered its revenue guidance for the present quarter to $2.6 billion from $2.7 billion, and its revised gross margin guidance to 23% from 25.6%.
Shares of Western Digital Corp. (NASDAQ:WDC) were down to knees 7.28% during Thursday session, even after the data storage manufacturer’s price target was lifted yesterday to $74 from $62 at Deutsche Bank.
The company kept a “buy” rating on the Irvine, CA-located firm due to the upside prospective in the near term. Western Digital’s $19 billion takeover of SanDisk (SNDK), which is ready to finalize in the 2016 Q2, would assist the firm to balance the shortage in hard disk drive revenue with growth in robust slate drive sales, Deutsche Bank experts mentioned in a note.
According to experts demand for NAND (flash memory) and SSDs persists to be robust, thanks to superior capacity need in cell phones, hiking implementation of SSDs in PCs, and demand for superior performance in enterprise applications.