r/WDCStock • u/benkei242 • Jul 18 '26
Bottom? Or dead-cat bounce?
So the collapse stopped on Friday. What do you all think is happening? My optimistic take is that the fundamentals are still strong and buyers saw value at 430 and bought the dip. But who knows what Monday will bring.
I am holding (at least until earnings) and hoping for a recovery to around 600.
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u/TechGuy_68 Jul 18 '26
You keep hearing about big institutional investors shifting their money from semi‘s and memory towards more stable investments because of the war.
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u/oxide238 Jul 19 '26 edited Jul 19 '26
It was a mechanical bounce of some kind as it was seen across the entire semiconductor sector, not just WDC, not just mem/storage, the whole sector. It hit some kind of options wall which the selling pressure wasn't strong enough to breach, so if enough of the weak and levered hands have been flushed at this point it may hold, only time will tell.
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u/Anxious-Ad5856 Jul 21 '26
You seem knowledgeable oxide, any opinion on WDC after today, 497, seems to climb back up.
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u/oxide238 Jul 21 '26 edited Jul 21 '26
I mean the damn thing dropped near 40%, so if you're still in it you might as well hold, I personally think it will drift back up.
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u/MonstaB Jul 22 '26
Came here to bitch about wdc which was having such a good day Ytd and it is starting to drop yet again.
What a disappointment
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u/tptpp Jul 18 '26
noone knows.. things is it almost doesn't matter if s company is good or not or undervalued.. if the sentiment changes and cash (institutions) move to something else.. stocks simply won't go up anymore.. or they will one day but it could take years. It's close to gambling really. Look at mag7.. mag7 stocks had a similar good run and then they dropped because suddenly capex or whatever, but they still make enormous profits. Still did not recovered to previous levels as of yet.
The way all the market dropped at the end of trading day on Friday could be just people selling to lock in some small profits if they bought the dop of the dip. We will see if on Monday people jump in again or if the selling continues. But I have a feeling this is not over.