SanDisk Stocks Rebound 5.82% After 22% Crash as 8-for-1 Split Nears

What happened

SanDisk shares rose 5.82% to $853.39 on Friday, November 6, recovering part of a drop of more than 22% the previous day as memory stocks rebounded. First-quarter revenue was $11.0 billion, and an eight-for-one forward split is scheduled for holders of record November 9, with adjusted trading starting November 20.

Confirmed

Global impact / market context

Data-center revenue rose 61% from the prior quarter, and SanDisk guided for second-quarter revenue of $12.2 billion to $12.6 billion. If sales growth and memory prices hold, revenue and profit may stay strong; falling prices could reduce the amount earned from each sale.

Analyst inference

First-quarter revenue grew 378% year over year, and gross margin, the share of sales remaining after direct production costs, reached 85.0%. The article also cites weaker historical profitability, so investors face uncertainty about whether this unusually strong performance can continue.

Analyst inference

What to watch

1. Compare upcoming second-quarter revenue with SanDisk’s $12.2 billion to $12.6 billion guidance; results below that range could signal slowing growth against the company’s forecast. Analyst inference
2. The eight-for-one split applies to holders of record November 9, with adjusted trading starting November 20; it changes the share count, not the business’s total value. Confirmed
3. Watch NAND pricing, the price of this type of flash memory; the article identifies sustained pricing as a key test of whether record-quarter results can persist. Analyst inference

Evidence

• gurufocus.com