Khac Phu Nguyen
1 min read
This article first appeared on GuruFocus.
SanDisk Corp (NASDAQ:SNDK) shares slid 7.83% to $901.17 at 9:35 a.m. ET in early regular-session trading on November 12 after the flash-memory maker traded about 5% lower before the open as NVIDIA’s CEO resigned, Yahoo Finance’s live coverage showed. The drop wipes out much of Wednesday’s rally.
Sandisk jumped 13.69% to $977.69 on Wednesday, alongside Micron, after CoreWeave said its capacity was largely sold out through 2027, 24/7 Wall St. reported. A share split is also near. Sandisk’s 8-K filing sets an eight-for-one split for holders of record on November 9, with seven additional shares issued after the close on November 19 and split-adjusted trading expected to begin November 20.
Thursday’s $76.52 drop erases about 65% of Wednesday’s dollar gain. On a split-adjusted basis, today’s price works out to about $112.65 a share, though a split changes nothing about value. GuruFocus gives Sandisk a GF Score of 47/100, with a perfect 10/10 financial-strength rank but just 4/10 profitability, and the summary page shows no GF Value. At about 7.2 times earnings, the market is pricing a cyclical peak. The next test is NAND pricing in Sandisk’s next quarterly report.
