Western Digital's Cloud Growth

And, Dexcom's U.S. sales decline.

October 25, 2024

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Today is Friday, October 25, 2024.

The Early Bird Index today is 73.87.

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Western Digital's Cloud Growth

Data storage company Western Digital (Nasdaq: WDC) posted mixed financial earnings results on Thursday, yet the stock still jumped 9.35% in after-hours trading.

Financials: Western Digital reported earnings of $1.78 per share in the past quarter, which was better than expected. Revenue reached $4.1 billion, which was lower than expected.

Powering the Story: Cloud revenue increased 17% in the quarter due to higher nearline shipments in HDD and enterprise SSD bit shipments to data center customers.

Stock Price: Western Digital was up 30% this year, but flat in the past 30 days.

Early Bird’s Nest Egg Gains: Enterprise demand for cloud services has seen significant growth in 2024.

  • Businesses are increasingly adopting cloud technologies to drive digital transformation initiatives related to artificial intelligence.

  • Studies have shown that cloud adoption correlates with revenue increases of up to 15%.

Final Thoughts: Over half of Western Digital’s revenue is cloud. (Wow!)

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Notables

Notable Earnings Today: Colgate-Palmolive (NYSE: CL), New York Community (NYSE: NYCB), AutoNation (NYSE: AN), Piper Sandler (NYSE: PIPR), Sanofi (Nasdaq: SNY), WisdomTree (NYSE: WT), Portland General Electric (NYSE: POR), Saia (Nasdaq: SAIA), Newell Brands (Nasdaq: NWL), Centene (NYSE: CNC), Aon (NYSE: AON), Booz Allen Hamilton (NYSE: BAH), Avantor (NYSE: AVTR), Balchem (Nasdaq: BCPC), Barnes Group (NYSE: B), First Hawaiian (Nasdaq: FHB), Gentex (Nasdaq: GNTX), HCA (NYSE: HCA), Lakeland Financial (Nasdaq: LKFN), Sensient (NYSE: SXT), Stellar Bank (NYSE: STEL), TriNet Group (NYSE: TNET).

Notable IPOs Today: WeRide Inc. American Depositary Shares (Nasdaq: WRD), Septerna, Inc. Common Stock (Nasdaq: SEPN).

Notable Equity Crowdfunding Campaigns Ending Today: Chicago Not Dogs (Honeycomb), Holme & Hadfield (Republic), Goat Moves (Netcapital), IdentifySensors Biologics (PicMii).

Notable Economic Events Today: Durable Goods Orders / Core Durable Goods Orders (8:30 a.m. ET), Michigan Consumer Expectations / Sentiment (10:00 a.m. ET).

Dexcom's U.S. Sales Decline

Source: DexCom

Dexcom (Nasdaq: DXCM), which makes glucose monitoring systems for diabetes management, fell by 3.95% in after-hours trading on Thursday after posting financial earnings results.

Financials: Dexcom reported earnings of 45 cents per share in the past quarter and revenue of $994.2 million; both were better than expected. 

Powering the Story: Overall revenue only grew 2% in the quarter. In the U.S., revenue declined 2%.

Final Thoughts: The stock is down 39% this year. It hasn’t recovered since posting bad financials in July.

Joby Aviation’s New Public Offering

Air taxi company Joby Aviation (NYSE: JOBY) declined by 8.28% in after-hours trading on Thursday after announcing a new public offering of $200 million of common stock.

Final Thoughts: Joby Aviation is struggling to take off this year. The stock was down 2% in 2024.

Electric Slide: Tesla’s $25,000 EV flip-flop, explained (TechCrunch)

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.