Western Digital Stock Is Tumbling Thursday: What's Going On?
Portfolio Pulse from Adam Eckert
Western Digital Corp (NYSE:WDC) shares dropped following reports that the company ended merger talks with Japan's Kioxia Holdings due to failure in securing approval from certain Kioxia shareholders. Both companies, facing headwinds in the memory chip space, are reportedly seeking capital infusions and exploring other options to strengthen operations. Western Digital is set to report fiscal first-quarter financial results on Oct. 30, with analysts expecting an earnings loss of $1.90 per share and revenue of $2.65 billion.
October 26, 2023 | 4:27 pm
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Western Digital's stock price fell after the company ended merger talks with Kioxia Holdings. The company is facing challenges in the memory chip space and is seeking capital infusions. It is expected to report a loss in the upcoming earnings report.
The termination of merger talks with Kioxia Holdings, coupled with the challenges in the memory chip space and the expected earnings loss, are likely to negatively impact Western Digital's stock price in the short term.
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