$Seagate Tech(STX.US)
Context: STX has pulled back quite a bit recently, but I don’t think the core story has changed. Cloud storage demand is still strong, HAMR is starting to become a bigger part of the business, and Seagate already has a lot of its nearline capacity spoken for well into 2028. The balance sheet is also in much better shape now, with the company back at investment grade.
My trade: I’m keeping my core position. At this point, I care a lot more about whether demand, margins and free cash flow stay strong than what the stock does over the next few weeks.
Takeaway: What I’m watching now is whether Seagate can keep margins above 50% as HAMR continues to scale. If it can, then I think the long-term story is still very much intact despite the recent pullback.
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