Why Seagate Technology (STX) Stock Is Falling Today
Kayode Omotosho /
April 20, 2023
What Happened:
Shares of data storage manufacturer Seagate (NASDAQ:STX) fell 5.88% in the pre-market session after the company reported disappointing quarterly earnings for the quarter ended March 31. STX missed revenue and EPS estimates and also guided next quarter's revenue and EPS below Consensus. On an absolute basis, revenue growth and operating margins were quite weak.
What is the market telling us:
Seagate Technology's shares are somewhat volatile and over the last year have had 14 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Seagate Technology is up 15% since the beginning of the year, but at $59.64 per share it is still trading 32.4% below its 52-week high of $88.17 from May 2022. Investors who bought $1,000 worth of Seagate Technology's shares at the IPO in December 2002 would now be looking at an investment worth $5.19 thousand.
Is now the time to buy Seagate Technology? Access our full analysis of the earnings results here, it's free.