Hard Drive Stocks: Looking Ahead

In the following video, analysts Brenton Flynn and Austin Smith discuss hard-disk drive juggernauts Seagate and Western Digital. After catastrophic flooding ravaged the industry's supply chain last year, Seagate emerged relatively unscathed and was able to ride its short-term position as the only game in town to massive gains. However, Western Digital is back in action, and the supply/demand equation has reached relative equilibrium once again. With solid-state storage staring the industry in the face as a major long-term threat, investors have to wonder how how long Seagate and Western Digital can leverage their dominant 80%-plus market share. 

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Austin Smith has no positions in the stocks mentioned above. Brenton Flynn has no positions in the stocks mentioned above. The Motley Fool owns shares of Western Digital. 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 Motley Fool has a disclosure policy.


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  • Report this Comment On August 07, 2012, at 1:27 AM, JackSpear wrote:

    Your video seems to suggest that SSDs over time will over-shadow hard-drives, but how do you explain this article?

    http://www.forbes.com/sites/ciocentral/2012/08/02/no-solid-s...

  • Report this Comment On August 07, 2012, at 10:38 AM, TMFNoonan wrote:

    Thanks for passing that link along.

    I'd say you always want to understand an author's true motives when writing an article. In this case, I'm not sure how objective this analysis is given that it's written by a Western Digital insider: "Currie Munce is VP, Research & Advanced Technology, for HGST, a unit of Western Digital."

    No doubt it will take years before this threat really starts to impact HDD in a meaningful fashion, but it's definitely a risk to be aware of.

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