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Buy the dip in Western Digital (WDC -6.2%) says FBN's Shebly Seyrafi, calling at least some of...

Buy the dip in Western Digital (WDC -6.2%) says FBN's Shebly Seyrafi, calling at least some of this morning's decline profit-taking, though he does worry the quarter's operating expenses came in higher than expected. Craig-Hallum's Christian Schwab downgrades to Sell, arguing there's no growth in the business. Needham's Rich Kugele reiterates his Strong Buy and $77 PT, noting outperformance on margins and earnings despite some handicaps. Seagate (STX -4.7%) slips with analysts suggesting there's been a slight share-shift to Western as Seagate avoided weak pricing in the PC market.
Comments (3)
  • alph124
    , contributor
    Comments (30) | Send Message
     
    The sudden evaporation of their STX's operating cash flow is a concern.
    25 Jul 2013, 12:27 PM Reply Like
  • Nate Sterling
    , contributor
    Comments (506) | Send Message
     
    The need for data storage will continue to expand exponentially, although it is shifting away from PCs to other forms. WDC is well-positioned for the gradual shift from HDDs to SSDs and can be a market leader in both. SSDs will remain much more expensive than HDDs per unit of storage, HDDs also tend to be more stable over long term and have higher capacity for read-write cycles, so HDDs will remain in demand for foreseeable future. Rather surprising to see WDC shares down more than 6% after WDC beat on both revenues and earnings and gave reasonably good conservative forward guidance. Just a temporary dip on the path higher.
    25 Jul 2013, 01:40 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5615) | Send Message
     
    PCs will not go away in my lifetime.
    26 Jul 2013, 01:23 AM Reply Like
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