SanDisk Earnings Report $SNDK

@moranmikey

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Promoted product

SanDisk

Why it worked

The video taps into the current AI boom and its impact on hardware companies like SanDisk, presenting a seemingly counterintuitive situation where good earnings lead to a stock drop, creating intrigue.

Summary

The video discusses SanDisk's recent earnings report, highlighting their significant profit and revenue beat compared to expectations. Despite strong performance, the stock dropped after the company provided guidance that was slightly below Wall Street's highest projections.

Structure

1SanDisk's strong earnings report
2Stock price is still falling
3AI and data center boom driving demand
4SanDisk's revenue and earnings beat expectations
5Guidance slightly below top-end expectations
6Investors demand perfection after stock surge

Product placement

SanDisk (acts: makes flash memory in solid state drives used to store data; its earnings report is discussed and its stock price is shown) - removing it would change the video's topic and financial data.

Original caption

SanDisk Beats Earnings - Stock Drops?

More from @moranmikey

On-screen text

SanDisk Earnings Report $SNDK SANDISK JUST WENT FROM LOSING $23 MILLION TO MAKING $6.9 BILLION IN PROFIT IN ONE QUARTER. AND SOMEHOW THE STOCK IS STILL GOING DOWN. 1,350.50 USD -77.12 (5.40%) Closed: Aug 5, 5:43 PM EDT Disclaimer After hours 1,255.00 -95.50 (7.07%) SANDISK TICKER S NDK JUST REPORTED $8.97 BILLION IN REVENUE. WALL STREET WAS EXPECTING ABOUT 8.48 BILLION. ADJUSTED EARNINGS PER SHARE CAME IN AT THIRTY NINE DOLLARS, PER SHARE, COMPARED WITH EXPECTATIONS OF ABOUT THIRTY FOUR DOLLARS, A SHARE. SO THEY BEAT EXPECTATIONS ON BOTH REVENUE AND EARNINGS. AND WE ALL KNOW THE BIGGEST REASON FOR THIS GROWTH IS THE AI. DATA CENTER BOOM. NOW AI COMPANIES NEED MASSIVE AMOUNTS OF STORAGE. AND SANDISK MAKES THE FLASH MEMORY IN SOLID STATE DRIVES USED TO STORE ALL THAT DATA. WHY THE STOCK IS DOWN AFTER SANDISK EXPECTS NEXT QUARTER'S REVENUE TO BE BETWEEN 10.3 AND 10.8 BILLION DOLLARS. THAT STILL REPRESENTS A MASSIVE AMOUNT OF GROWTH. BUT WALL STREET WAS EXPECTING ABOUT $10.82 BILLION. IN OTHER WORDS, THE TOP END OF SANDISK'S FORECAST WAS SLIGHTLY BELOW EXPECTATIONS. AND WHEN A STOCK HAS ALREADY GONE UP SEVERAL HUNDRED PERCENT, INVESTORS ARE NOT LOOKING FOR GOOD NUMBERS. THEY ARE LOOKING FOR ABSOLUTELY PERFECT NUMBERS. SO THIS WAS A GREAT QUARTER, BUT APPARENTLY THE GUIDANCE WAS NOT GREAT ENOUGH.

Transcript

SanDisk just went from losing $23 million to making $6.9 billion in profit in one quarter. And somehow the stock is still going down. 1,350.50 USD -77.12 (5.40%) Closed: Aug 5, 5:43 PM EDT Disclaimer After hours 1,255.00 -95.50 (7.07%) SanDisk ticker SNDK just reported $8.97 billion in revenue. Wall Street was expecting about 8.48 billion. Adjusted earnings per share came in at thirty nine dollars, 25 cents per share, compared with expectations of about thirty four dollars, a share. So they beat expectations on both revenue and earnings. And we all know the biggest reason for this growth is the AI. Data center boom. Now AI companies need massive amounts of storage. And SanDisk makes the flash memory in solid state drives used to store all that data. Why the stock is down after Sandisk expects next quarter's revenue to be between 10.3 and 10.8 billion dollars. That still represents a massive amount of growth. But Wall Street was expecting about $10.82 billion. In other words, the top end of Sandisk's forecast was slightly below expectations. And when a stock has already gone up several hundred percent, investors are not looking for good numbers. They are looking for absolutely perfect numbers. So this was a great quarter, but apparently the guidance was not great enough.