TLDR
- Western Digital dropped from $577.46 to around $528.93 on Tuesday, a fall of roughly 9%, after Samsung’s earnings triggered sector-wide selling.
- Samsung reported a 19-fold surge in operating profit, but investors used the news as an opportunity to take profits in memory stocks.
- Despite the drop, analysts remain bullish, with a consensus “Moderate Buy” rating and recent price target upgrades from BofA ($732), Cantor Fitzgerald ($900), and Morgan Stanley ($650).
- WDC’s last quarterly earnings beat expectations, posting EPS of $2.72 vs estimates of $2.39, with revenue up 45.5% year over year.
- The next major catalyst is WDC’s estimated earnings report on July 29, 2026, with EPS expected at $3.27 and revenue at $3.69 billion.
Western Digital (WDC) opened at $532.40 on Tuesday after closing at $577.46 the previous day, and continued sliding to around $528.93 during the session — a drop of roughly 9%. Volume hit 1.28 million during the session.
Western Digital Corporation, WDC
The trigger was Samsung Electronics. The company reported a 19-fold surge in operating profit, but rather than lifting the sector, it gave investors a reason to cash out. The sell-the-news reaction hit memory and storage stocks across the board.
WDC wasn’t alone. Micron and SanDisk also fell around 7%, while the Roundhill Memory ETF (DRAM) dropped over 8%. The Nasdaq slid 2.11% on the day, with the technology sector leading losses at 3.1%.
The selloff raises a fair question: is this a blip or something bigger?
Technically, WDC is still in a longer-term uptrend, sitting about 25% above its 100-day moving average and roughly 78% above its 200-day. But the near-term picture looks softer. The stock is now about 14.5% below its 20-day moving average and around 2.2% below its 50-day — levels that suggest the pullback is more than routine noise.
What Analysts Are Saying
Wall Street’s reaction to the drop has been measured. The stock carries a consensus “Moderate Buy” rating from 24 analysts, with two Strong Buy ratings, 18 Buy ratings, and four Hold ratings.
More striking is the confidence in the price targets. Cantor Fitzgerald has a $900 target, set on June 29. BofA raised its target to $732 on July 1. Morgan Stanley has an “Overweight” rating with a $650 target set June 15. These were all set after significant appreciation in the stock, and none have been pulled following today’s drop.
Mizuho boosted its target from $550 to $685 just last month, also with an “Outperform” rating.
Fundamentals Remain Solid
The latest quarterly results, reported April 30, showed EPS of $2.72, beating analyst estimates of $2.39 by $0.33. Revenue came in at $3.34 billion versus expectations of $3.25 billion. Year-over-year revenue growth was 45.5%.
The company also raised its quarterly dividend from $0.12 to $0.15 per share, paid out on June 17. That puts the annualized dividend at $0.60, representing a yield of about 0.1% at current prices.
For the current year, analysts expect WDC to post $9.60 EPS on average. The company’s own Q4 2026 guidance sits in the range of $3.10 to $3.40 EPS.
On the insider side, Director Bruce Kiddoo sold 750 shares at $528.52 in late May, reducing his stake by 16.12%. Insider Vidyadhara Gubbi sold 4,674 shares in early May at $443.19. Over the past three months, insiders have sold a combined $12.77 million in stock.
The next scheduled earnings report is estimated for July 29, 2026. Analysts expect EPS of $3.27 — up from $1.66 a year ago — and revenue of $3.69 billion, compared to $2.60 billion in the same period last year.
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