Western Digital's 19% Plunge Mirrors Past Crashes That Averaged 139% Returns
WDC has more than doubled off its 52-week low of $73.14.
Summary
Western Digital shares are down 19% to ~$420 after Q4 results beat estimates but failed to impress a market that had priced in perfection. Revenue of $3.75B (+44% YoY) and EPS of $3.56 topped consensus, but Q1 guidance of $4.1B revenue and $4.00 EPS implied decelerating sequential growth. The selloff follows a 620% 12-month rally and a 40% pullback from June highs. Benzinga's historical analysis shows that in 11 prior >15% single-day drops since 2000, WDC delivered positive returns 82% of the time over 3 months (median +29%) and 91% over 6 months (median +29%), with an average 12-month return of 139%. The most recent crash in April 2025 preceded a 791% gain. While past patterns don't guarantee a rebound, the data suggests violent selloffs have historically been buying opportunities.
At the time of this announcement, WDC was trading at $466.58 on NASDAQ in the Technology sector, with a market capitalization of approximately $160.8B. The 52-week trading range was $73.14 to $799.87. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Benzinga.