WDC stock is up 36% this year

Western Digital (WDC) stock has gained close to 36% so far in 2019. Why has the stock risen despite the company’s dull revenue and earnings forecast?

WDC was trading at $106.5 in March 2018 and fell 66% to $35.9 in December, so it looks like the weak revenue forecast that drove the stock lower last year has already been priced in.

What Factors Have Affected Western Digital Stock Recently?

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Stock rose 9.8% on March 21

WDC stock rose 9.8% to close at $51.78 on March 21, 2019. This price rise followed Micron Technology’s (MU) earnings call, during which its management remained optimistic and said that it expected the semiconductor market to recover in the second half of 2019.

NAND memory chip suppliers such as WDC and Micron have been affected by oversupply, which has resulted in price falls for their chips. The overall demand for NAND is expected to pick up later this year.

The stock prices of WDC’s peers Micron, Seagate (STX), and Applied Materials (AMAT) have also recovered this year and are up 34%, 27%, and 27%, respectively, after a difficult 2018. The VanEck Vectors Semiconductor ETF (SMH) has also gained 28% in 2019 after falling close to 12% in 2018.

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Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.

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