Core Viewpoint - SanDisk's stock is currently underperforming, with expectations for improvement in 2026 despite recent negative trends in demand and pricing for computer memory [1][4]. Group 1: Current Stock Performance - SanDisk shares fell by 8.3% as of Monday afternoon, attributed to a report from Edgewater Research [1]. - The company has been unprofitable, reporting losses of $1.5 billion over the last 12 months, with analysts predicting further losses of $1.4 billion this year [5]. Group 2: Market Demand and Pricing - Edgewater Research indicates that demand and pricing for computer memory in the first half of 2025 were better than expected, but the second half of the year is projected to be "sub seasonal" with a downward bias [3][4]. - This negative outlook applies to both SanDisk and its competitor Micron [4]. Group 3: Future Projections - SanDisk is expected to return to profitability in 2026, potentially earning $607 million, which would result in a P/E ratio of about 11 based on those earnings [6]. - The current P/E ratio is undefined due to ongoing losses, but a significant stock sell-off could present a buying opportunity for investors willing to wait for recovery [6].
Why SanDisk Stock Slumped on Monday