Western Digital (NASDAQ: WDC) closed at $397.28 on October 9 and has returned 13.4% over the past six months, trailing both the Insider Monkey Billionaire Index (24.3%) and the State Street SPDR S&P 500 ETF Trust (15.1%). The article argues that most of the reported net profit came from marking up a retained SanDisk stake after its February 2025 separation, while free cash flow came in well below net income. It calls the 43.80% revenue growth and 43.61% operating margin remarkable, but says they reflect a storage cycle at its peak, when demand outpaces drive manufacturing capacity. According to the article, a forward P/E of 12.40 looks cheap on peak earnings, while a price-to-book of 18.99 shows the stock is expensive relative to its assets. At the end of Q2 2026, 98 hedge funds held the stock with a combined value of about $9.94 billion, up from 83 funds and $6.57 billion the previous quarter.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Get briefings and signals on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the morning, midday and evening briefing of each market and important news as it happens.