Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Seagate Technology Shares Rocketed: What You Need to Know

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of hard drive specialist Seagate Technology (Nasdaq: STX  ) soared more than 20% in intraday trading today on relief that flooding in Thailand hasn't hurt its operations as badly as main rival Western Digital (NYSE: WDC  ) , who has been forced to shut down operations in the region.

So what: Seagate's manufacturing facilities in Thailand remain operational, placing it in a prime position to grab market share and grow margins over the next few quarters. In fact, Seagate's first-quarter results yesterday, which were largely in line with expectations, already seem to be confirming that notion in the minds of investors.

Now what: I'd continue to be cautious about diving into Seagate. While its Thai operations are running at full production, Seagate still has a problem of where to get its components, as several of its key suppliers have also been affected by the flood. "Given the severity of the situation and the extensive supply constraints caused by the disruption, including those described by our primary competitor," CEO Steve Luczo said, "the effects on our industry are likely to be substantial and will extend over multiple quarters."

Interested in more info on Seagate? Add it to your watchlist.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


Read/Post Comments (0) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1574374, ~/Articles/ArticleHandler.aspx, 10/27/2016 11:22:14 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,190.50 -8.83 -0.05%
S&P 500 2,137.08 -2.35 -0.11%
NASD 5,233.01 -17.26 -0.33%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/27/2016 11:06 AM
STX $34.67 Down -0.17 -0.49%
Seagate Technology CAPS Rating: ****
WDC $60.31 Up +3.79 +6.70%
Western Digital CAPS Rating: ***