{"id":6561,"date":"2026-10-22T00:43:32","date_gmt":"2026-10-22T00:43:32","guid":{"rendered":"https:\/\/digitalmarkettrends.com\/index.php\/2026\/10\/22\/western-digital-stock-is-stuck-in-a-bear-market-will-it-rebound-after-earnings\/"},"modified":"2026-10-22T00:43:32","modified_gmt":"2026-10-22T00:43:32","slug":"western-digital-stock-is-stuck-in-a-bear-market-will-it-rebound-after-earnings","status":"publish","type":"post","link":"https:\/\/digitalmarkettrends.com\/index.php\/2026\/10\/22\/western-digital-stock-is-stuck-in-a-bear-market-will-it-rebound-after-earnings\/","title":{"rendered":"Western Digital stock is stuck in a bear market: will it rebound after earnings?"},"content":{"rendered":"
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Western Digital’s stock has been under pressure since June, when it peaked at $800. Since then, it has fallen more than 52% to its current price of $378, with its market capitalization shrinking from $257 billion to $141 billion. Investors are now looking to the company’s upcoming earnings report as a potential catalyst that could help improve sentiment and drive a recovery in the stock’s performance.<\/p>\n

Western Digital\u2019s implied volatility has jumped<\/h2>\n

WDC stock has dropped sharply in the past few months because of the ongoing weakness among companies in the memory industry. A look at all companies in the Roundhill Memory ETF (DRAM) shows that all of them have retreated by double digits from their highest levels this year.<\/p>\n

Western Digital stock will likely experience some volatility when it releases its earnings report. The options market show that its implied volatility has jumped to 140%, more than double the historic volatility of 63%. <\/p>\n

Most traders in the options market expect the stock to rebound after its earnings report. The company has a put\/call ratio of 0.67, a sign that there are more calls than puts. Most calls are concentrated at $400, 4.5% above the current level. On the other hand, most of the calls are at $375, a few points below where it is today.<\/p>\n

Western Digital stock dropped by over 13% after releasing its last results. Before that, its post-earnings moves were usually muted because it was not a popular stock. <\/p>\n

Most recently, however, most memory stocks have remained muted after publishing their financial results. Micron remained in a tight range, even after management released a strong earnings report, which showed that its revenue jumped to $54 billion. <\/p>\n

Western Digital\u2019s revenue is soaring<\/h2>\n

The upcoming earnings report is expected to show that Western Digital\u2019s revenue<\/a> continued growing in the first quarter. This growth is happening because of the artificial intelligence boom that has led to vast amounts of data being produced. <\/p>\n

The average estimate among analysts is that Western Digital\u2019s revenue rose by 47% to $4.14 billion, with the most optimistic forecast being $4.27 billion. Its earnings per share is expected to soar from $1.78 in Q1 of last year to $4.08. Based on the recent earnings report, chances are that the company\u2019s real results will be much higher than expected.<\/p>\n

Western Digital\u2019s management expects that its revenue growth will continue accelerating, with its gross margin rising to over 50%. Its margins are benefiting from the ongoing shift towards higher-capacity HDDs that are used in the data center industry.<\/p>\n

The main risk that Western Digital faces is that its business may see a big supply of HDDs, especially from Chinese companies. <\/p>\n

WDC stock price technical analysis<\/h2>\n
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Western Digital stock chart | Source: TradingView<\/em><\/p>\n

The daily chart shows that the Western Digital stock has slumped in the past few months, falling from a high of $800 in June to the current $378. Most recently, it formed a descending channel, which is characterized by a series of lower lows and lower highs. It has also dropped below the 200-day Exponential Moving Average (EMA).<\/p>\n

The most likely scenario is where the stock rebounds as bulls attempts to retests the upper side of the descending channel at $420. A drop below the lower side of the channel will point to more downside in the near term.<\/p>\n

The post Western Digital stock is stuck in a bear market: will it rebound after earnings?<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Western Digital’s stock has been under pressure since June, when it peaked at $800. Since then, it has fallen more than 52% to its current price of $378, with its market capitalization shrinking from $257 billion to $141 billion. Investors are now looking to the company’s upcoming earnings report as a potential catalyst that could […]<\/p>\n","protected":false},"author":1,"featured_media":6562,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-6561","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/posts\/6561","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/comments?post=6561"}],"version-history":[{"count":0,"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/posts\/6561\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/media\/6562"}],"wp:attachment":[{"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/media?parent=6561"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/categories?post=6561"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/digitalmarkettrends.com\/index.php\/wp-json\/wp\/v2\/tags?post=6561"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}