Seagate Technology stock hits key resistance ahead of its earnings: buy or sell?

Core Viewpoint - Seagate Technology's stock has experienced significant growth due to the increasing demand for memory devices driven by the artificial intelligence boom, with a price increase of 452% since April of the previous year [1][2]. Company Performance - Seagate Technology manufactures data storage devices, including hard drives and solid-state drives, which are essential for personal computers and data centers [2]. - The company's revenue for the third quarter rose to $2.62 billion, up from $2.16 billion [3]. - Gross margins improved to 39.4% from 32.9%, and net income increased from $305 million to $549 million, with earnings per share rising to $2.43 [4]. Future Expectations - Upcoming earnings are anticipated to show revenue of $2.75 billion, an 18% increase from the same period in 2024 [4]. - Earnings per share is expected to reach $2.84, a 40% increase from $2.03 in Q4'24, with annual revenue projected at $11.12 billion, up 22% year-over-year [5]. - Analysts predict annual revenue could reach $13.2 billion, reflecting an 18.7% year-over-year growth due to the AI boom and ongoing PC refresh [5]. Industry Context - Seagate's performance aligns with other companies in the memory industry, such as Kioxia, Micron, Sandisk, Western Digital, SK Hynix, Samsung, and Toshiba, which have also seen positive results [3]. - The memory industry is currently experiencing a boom, but there are concerns about potential volatility in the future [6]. Technical Analysis - The stock has been in a strong uptrend, forming an ascending channel, and is currently near the upper side of this channel [9]. - The stock remains above the 50-day and 100-day Exponential Moving Averages, with rising Relative Strength Index (RSI) and Percentage Price Oscillator (PPO) [10]. - There is a possibility of a pullback towards $300, but a breakout above the channel could lead to further gains, potentially reaching $400 [10].