News about STX

Seagate (STX) closed at $690.81 on October 15 and its shares are up 206.48% over the past year, even though hard disk drives have been largely replaced by flash memory in laptops and phones. Hard drives remain popular with data centers because they are considerably cheaper per unit of capacity, which suits the large volumes of rarely read data that AI produced. Revenue rose 48.5% in the latest quarter and earnings grew 165.2%, driven by scarce supply, as only three companies make hard drives and Seagate told investors its data center capacity is fully allocated through this year. The article warns that prices could fall once supply catches up, and notes debt is 179.88% of equity. The stock trades at 25.71 times next year's expected earnings, against 66.17 times over the past twelve months.