Morgan Stanley Warns of Sharp Decline in HDD Prices (STX) (WDC)
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Rating Summary:
5 Buy, 16 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
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Shares of Seagate (NYSE: STX) and Western Digital (NYSE: WDC) are leading the Hard Drive sector lower Thursday afternoon following some concerning comments from a Morgan Stanley analyst earlier.
Recent data from Morgan Stanley showed a 6.8 percent decline in hard disk drive channel prices over the last week, the largest weekly decline since the beginning of 2012. A Seagate spokesperson told Morgan Stanley a chunk of the downside can be explained by product mix shifts and price harmonization among a number of vendors.
Seagate shares last traded at $23.40, down nearly 4 percent from Thursday's close, while shares of Western Digital are down 3.2 percent to $31.19. Seagate and Western Digital shares traded to as low as $22.89 and $31.01, respectively.
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Recent data from Morgan Stanley showed a 6.8 percent decline in hard disk drive channel prices over the last week, the largest weekly decline since the beginning of 2012. A Seagate spokesperson told Morgan Stanley a chunk of the downside can be explained by product mix shifts and price harmonization among a number of vendors.
Seagate shares last traded at $23.40, down nearly 4 percent from Thursday's close, while shares of Western Digital are down 3.2 percent to $31.19. Seagate and Western Digital shares traded to as low as $22.89 and $31.01, respectively.
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Bound to happen
Steve on May 31, 2012 03:15 PMMark as Spam | Reply to this comment
Hard drive prices have been higher than normal for quite some time due to the flooding in Thailand. Now that production is ramping up again and supplies are higher, prices will gradually decrease towards what they were 1-2 years ago.