On August 6, Western Digital declined 11.46% overnight, trading at $458.98/share, with turnover of $567,500. The sell-off followed the release of fiscal Q4 earnings after the prior session's close, where strong results failed to sustain a stock that had already tripled year-to-date on AI storage optimism.

Western Digital reported fiscal Q4 revenue of $3.747 billion, up 44% year-over-year and above the $3.69 billion consensus estimate. Adjusted EPS came in at $3.56, beating the $3.29 analyst expectation by approximately 8%. Net income surged over 1,200% year-over-year. For fiscal Q1, the company guided revenue of $4.0-4.2 billion and adjusted EPS of $3.85-$4.15, roughly in line with consensus estimates of $4.02 billion and $3.83, respectively.

Despite the double beat, the guidance failed to deliver the outsized upside investors demanded to justify the stock's massive year-to-date rally. Analysts noted that the storage sector had experienced significant profit-taking pressure throughout July, and the earnings report did not provide a sufficiently compelling AI demand catalyst to reverse that trend. Peer SanDisk fell 7.45% in sympathy, reflecting broader sector weakness.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)