Seagate (NASDAQ:STX) was down over 9% today. As Fool senior technology analyst Eric Bleeker describes in this video, it committed an act ruled unforgivable in today's earnings environment. That is, it guided weakly. Previously, we've seen Apple sell off on its own weak guidance and VMware see its own 20% plunge today based on guidance that was in line with what Seagate provided.
The problem, Eric thinks, is that all of these companies are seen as an inflection point in their growth story. With Seagate, investors are now nervous about whether the company can continue pushing back against pricing wars and weakening PC demand in a hard disk drive space that's been the subject of fierce battles in recent years.
Eric Bleeker has no positions in any stocks mentioned. The Motley Fool recommends Apple and VMware. The Motley Fool owns shares of Apple, VMware, and 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.