Beneath yesterday's drop lies an economic reality. SanDisk latest revenue soared 175% year over year to USD 20.3 billion, with adjusted EPS erupting to USD 70.88.
SanDisk has literally signed away two thirds of next year's manufacturing output to long term enterprise agreements.
Yet Wall Street is pricing SanDisk at a conservative forward Price to Earnings (P/E ratio) at just 8 times future profits.
For long term investors, a 24% discount from recent all time highs is a gift.
Another alternative strategy is to buy $Roundhill Memory ETF(DRAM)$ which includes $Micron Technology(MU)$ $SK hynix(SKHY)$ Samsung Electronics Γ nd much more. It also includes SanDisk.
DRAM ETF is a low cost and diversified way to tap into the best memory storage stocks.
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