Seagate Technology (STX) news that moved the stock

What happened

The AI-spending selloff extended into a third straight day of tech declines on Monday, November 2. The Nasdaq Composite fell 1.07% to 25,164.32 and the S&P 500 slipped 0.51% to 7,541.40, while the Dow Jones Industrial Average rose 0.41% to 51,983.98 — the only major index to finish higher. Technology was the worst sector at -2.66%, and the Philadelphia Semiconductor Index dropped 3.37%. Intel tumbled another 8.8% after its ~30% Friday collapse; Marvell Technology plunged 12.72% and Lumentum 18.59% as the market punished the $115B all-stock merger; Oracle sank 8.85% to $119.10 after filing a $20B stock-and-bond raise; Micron fell 5.7% and Seagate 8%.

What happened

Seagate Technology reported record fiscal first-quarter results after Tuesday's close, but shares fell 5.7% to $630 in after-hours trading after rising 3.7% in the regular session. Adjusted earnings were $7.68 per share, up from $2.61 a year ago and above Wall Street's $7.45 consensus, while revenue rose 61% year over year to $4.23 billion, beating the $4.15 billion consensus. Guidance also topped estimates: Seagate expects second-quarter adjusted earnings of $9.20 per share (plus or minus 20 cents) on revenue of about $4.8 billion, versus consensus of $8.66 per share and $4.5 billion. Capital spending of $211 million was within the company's 4-6% of revenue target range but above the $202 million analysts expected.

What happened

Western Digital reported fiscal first-quarter results ahead of estimates: earnings climbed 160% to $4.64 per share (FactSet consensus $4.11) and sales jumped 55% to $4.38 billion (consensus $4.14 billion). The company guided December-quarter revenue to $5.1 billion, well above the $4.57 billion analyst consensus. CFO Kris Sennesael cited 'robust exabyte growth and improved pricing,' with WD shipping 248 exabytes during the September quarter, up 22% year over year. Despite the beat-and-raise, WDC stock sank more than 5% after hours, extending a pullback of more than 50% from June highs.

What happened

U.S. equities rebounded Monday after the Nasdaq's worst week since June, with the Nasdaq Composite rising about 1.3% and the S&P 500 up 0.5% while the Dow was flat. Chipmakers and AI-infrastructure stocks led the recovery: the iShares Semiconductor ETF (SOXX) rose more than 2%, with SanDisk and Western Digital up over 6%, Marvell up 5%, and Intel, Lam Research and Micron up more than 4%. The Magnificent Seven — except Meta — powered the advance: Amazon surged 4.8%, adding 71 points to the Dow, while Microsoft, Nvidia and Alphabet each contributed roughly 24 points; Tesla rose 3-4%. Meta lagged, falling about 0.9%. The bounce came as Dow and S&P futures had climbed earlier in the day on fading expectations of an October Fed rate hike (odds now ~13-15%) and as investors positioned ahead of a pivotal earnings week.

What happened

Bloomberg reported Tuesday that Seagate Technology and Japan's Toshiba have entered a bidding contest to acquire TDK Corp's business that produces magnetic heads for hard-disk drives. The deal news hit an already-weak memory sector: Seagate shares sank about 9% and Western Digital fell roughly 6.5-7% as investors weighed the cost of a bidding war and broader fears that memory prices may be peaking.

What happened

Nikkei reported that Japan's Toshiba plans to double production capacity for hard-disk drives used in data centers during its fiscal 2027, investing roughly $380 million. Investors took it as a direct threat to the Seagate/Western Digital duopoly: Seagate plunged about 10% in premarket trading to ~847.86 and Western Digital fell about 7% to below ~430. The market is pricing in the risk that the supply shortages underpinning both companies' pricing power and record AI-storage margins get relieved by a third competitor.