SanDisk Shares Fall 19% Despite Strong Earnings
SanDisk shares dropped more than 19% on Thursday, extending a six-session decline. The fall came even though the company reported strong quarterly earnings and an upbeat forecast. Investors have been watching China's CXMT, weakness across memory chip stocks and worries about data centre expansion.
Context
SanDisk makes flash memory used in phones, computers and data centres, so its share price tends to move with demand for those chips. Memory stocks often rise and fall together in sharp cycles, which is why one company's drop can spill across the sector.
Burning Potato score: 56%