Bullish Case: The split of Western Digital may unlock shareholder value; each entity could better focus resources on distinct markets [The Register]. Potential synergies and growth opportunities from recent product expansion and maintaining supplier relationships could also drive profits [The Verge, siliconangle.com].


Show historical bullish cases

Bearish Case: The split decision could lead to uncertain future financial policies, potentially more aggressive capital returns [fitchratings.com]. Western Digital's declining revenues by 26% YoY, driven by a drop in flash memory and disk drive sales, raises questions about performance post-split [The Verge].


Show historical bearish cases

Takeaway: Western Digital's decision to split its businesses presents potential opportunities but also brings uncertainties. While the split could unlock shareholder value and enhance focus, sales declines and potential changes in financial policies could negatively impact the firm's performance [fitchratings.com, The Register, The Verge].


Show historical takeaways

Potential Outcomes:

1. Successful split, driving shareholder value and company growth (45%): The split could enable each sector focus and capital allocation, potentially leading to better market positioning and growth [The Register, The Verge].

2. Unsuccessful split, losses to shareholders (30%): Challenges in executing the split or poor performance post-separation could lead to shareholder value erosion.

3. Stabilization or improvement in flash and disk drive sales (25%): Market dynamics and product innovation could drive sales upwards [The Verge].


November 14, 2023







Correlated Stock Forecasts

Assets that tend to move strongly with WDC



URA Forecast + Options Trading Strategies   [URA]  Global X Uranium (0.89)


COUR Forecast + Options Trading Strategies   [COUR]  Coursera (0.86)


APO Forecast + Options Trading Strategies   [APO]  Apollo (0.86)


ET Forecast + Options Trading Strategies   [ET]  Energy Transfer LP (0.84)


TEAM Forecast + Options Trading Strategies   [TEAM]  Atlassian (0.83)



Uncorrelated Stock Forecasts

Assets with little price relationship to WDC



BITO Forecast + Options Trading Strategies   [BITO]  ProShares Bitcoin Strategy (0.01)


GD Forecast + Options Trading Strategies   [GD]  General Dynamics (0.01)


NFE Forecast + Options Trading Strategies   [NFE]  New Fortress Energy (0.01)


ERO Forecast + Options Trading Strategies   [ERO]  Ero Copper (0.02)


NIO Forecast + Options Trading Strategies   [NIO]  NIO (-0.02)



Anticorrelated Stock Forecasts

Assets that tend to move strongly against WDC



SILJ Forecast + Options Trading Strategies   [SILJ]  ETF Managers Group LLC - ETFMG Prime Junior Silver Miners (-0.65)


BDRY Forecast + Options Trading Strategies   [BDRY]  Breakwave Dry Bulk Shipping (-0.65)


XLP Forecast + Options Trading Strategies   [XLP]  Consumer Staples Select Sector SPDR (-0.66)


GPC Forecast + Options Trading Strategies   [GPC]  Genuine Parts (-0.66)


VXX Forecast + Options Trading Strategies   [VXX]  iPath Series B S&P 500 VIX Short-Term Futures (-0.7)