Why Did Western Digital Stock Crash After Earnings?

Western Digital stock plunged 11.7% despite beating earnings expectations with $3.56 per share on $3.75 billion in sales. The company reported 44% year-over-year sales growth and 1,125% GAAP earnings growth driven by AI-related demand for computer memory. Management provided strong forward guidance expecting 42-49% sales growth in Q1 2027, exceeding analyst expectations. The analyst argues the sell-off is unjustified given the strong results and outlook.