Western Digital slips 3% as storage cycle debate intensifies
Western Digital fell 2.97% to $343.67 on Thursday, giving back some of a rally that has pushed the stock 193% above its 52-week low of $117.23. The pullback comes as Jim Cramer argues the storage-stock cycle has broken, citing SanDisk's 496% year-to-date gain and gross margins of 47-85%. WDC's own fundamentals support the thesis: revenue grew 35.7% year-over-year, EPS surged 363.8%, and net margin hit 73%. The stock trades at 15.37 times earnings, well below the 52-week high of $799.87. Alpha Score stands at 57.4, driven by quality (98.8) and value (65.4), though momentum lags at 33.3. SanDisk perpetual open interest reached $1.73B, the largest among stock perps and 1.86 times SpaceX's SPCX. Watch for Q2 earnings next week to see if margin expansion continues.