Cryptocurrency stockpiler Strategy might have an obstacle in its path to S&P 500 inclusion — in the form of an “elephant” currently residing in the S&P Small-Cap 600 index.
SanDisk (NASDAQ: SNDK) delivered a decisive earnings beat today, posting $1.22 in adjusted EPS against a $1.02 consensus estimate and $2.31 billion in revenue versus a $2.21 billion expectation.
Lucas Downey (@MoneyFlowsCom) shows data from his firm that shows an A.I. trade refusing to slow momentum.
Up 215% year-to-date? That's no mistake.
Sandisk Corporation (NASDAQ: SNDK) shares climbed 13% to $83.45 in midday trading on Thursday after Morgan Stanley increased its target price on the computer memory-maker to $96 per share, from $70, while maintaining its ‘Overweight' rating. The brokerage firm also bumped the stock up to Top Pick status.
Sandisk (SNDK) shares slumped Friday, a day after the maker of computer flash drives gave lower-than-expected profit guidance as startup costs increase.
I am bullish on SNDK due to its strong position in a supply-constrained NAND market, supporting higher prices and earnings growth. Sandisk benefits from disciplined industry supply, AI-driven enterprise SSD demand, and a PC upgrade cycle, all fueling long-term revenue growth. Valuation is attractive, with potential for 24% upside as SNDK's revenue and margins expand, aligning with industry peers' multiples.
SanDisk (NASDAQ:SNDK) shares moved higher after Bank of America initiated coverage on the developer and manufacturer of data storage devices based on NAND flash technology with a ‘Buy' rating and price objective of $61, representing upside of about 38% at the time of writing. The analysts explained that their ‘Buy' thesis is supported by several key factors, including improving memory pricing as the supply-demand balance shifts positively and room for profit margins to expand due to both the pricing trajectory and operating leverage.
Sandisk Corporation posted a sequential revenue decline and a large GAAP loss due to a goodwill impairment, but beat non-GAAP EPS estimates. Gross margins deteriorated sharply, and oversupply is pressuring prices, but management expects gradual margin and profitability recovery next quarter. SanDisk's long-term outlook is tied to SSD adoption; the company must weather current downturns and maintain profitability until SSDs gain enterprise traction.