Sandisk Stock Has Been Cut Nearly in Half Since June. Should You Buy It Before Thursday's Report?
With the flash memory maker reporting Thursday, has its stock already priced in a slowdown?
Sandisk (SNDK) stock experienced a significant drop of nearly 50% since June, now trading around $1,262 after peaking at $2,335. The decline intensified in October, with a further 10% decrease, including an 8% drop on October 22. The next report, due on October 29, could provide insights into the stock's future. The company's guidance for Q1 2027 anticipates a 18% revenue increase, although sequential growth has slowed from 97% in Q3 to 51% in Q4.
Management expects higher storage shipments and modest price increases to drive growth. However, Micron Technology (MU) raised prices by around 30% in its latest quarter, suggesting Sandisk's price hikes might be tapering. Supply constraints and growing data center sales are key factors for Sandisk, but the company's inventory increases and upcoming report will determine if the stock is a buy.
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