WDC fundamentals are strong (revenue beat $1.24 billion, +138% YoY; demand, pricing power and margins improving; guidance raised), but shares are falling because expectations, especially for EPS and margins, were too high; whether buyers step in after a 10-20% drop from highs is unclear.

In particular, Western Digital, which released its quarterly report. Based on your point, it seems that " good" is not enough in the technology trade specifically. Could you please clarify some of your conclusions?

Yes, we have seen the company excel in both profits and revenues . Revenues reached $1.24 billion. While market expectations were around $1.06 billion . This represents an increase of approximately 138% year-on-year.

So, the demand is definitely there. They also appear to have considerable pricing power in the hard drive space, with gross margins of 33.8%, and are raising their guidance for fiscal year 2026 to 34% for non-GAAP gross margins .

But demand remains very strong. Their CEO points out that it's not just large companies that are buying into their products, but other industries are also starting to adopt them, which also explains this revenue growth.

They are optimistic that this trend will indeed continue. Now, once again, unfortunately, we are seeing a decline in price, but it is still higher than the low levels we saw yesterday.

Therefore, expectations seem to have been very high. The market probably wants to see a slightly bigger surprise, especially when you look at earnings per share and margins , which is not happening at the moment.

However, nothing diminishes the strong fundamentals of this company.

Okay, let's go back to Western Digital to update viewers on the latest developments. Revenues have increased by 55% year-on-year, reaching $4.4 billion. He showed us some other figures.

Yes, we see that Western Digital's non-GAAP profit margins were 58.1%, while its operating margins were 49.1%. So, overall we are looking at very good numbers here. We also saw a net income of $1.78 billion for the current quarter.

They have raised their dividend by 17% to 17.5 cents per share, and their forecast for future revenue is around $5.1 billion plus or minus $100 million . As for non-GAAP earnings per share for the second quarter, they are at $5.80 plus or minus $0.20, and they expect gross profit margins to be between 60 and 61%.

That's a very good improvement compared to the previous quarter. They continue to see increased demand again. This trend still exists for them, but I think the expectations for these stocks are too high, at least for the time being.

And you see a decline again today; Let's see if we will actually see buyers enter after many of these stocks have seen a drop of 10, 15 or even 20% from their highs .