Prominent Short Seller Hindenburg: Shorting SanDisk, Current Memory Chip Market Boom a "Supply Mirage"
BlockBeats News, February 24th - Renowned short-selling institution Citron released a report stating that SanDisk is overvalued in the market, similar to NVIDIA, but with a difference: NVIDIA has a moat, while SanDisk sells commoditized products. Western Digital sold a large portion of its stake a few days ago at a price 25% below the market price, indicating that seasoned investors foresee the memory cycle reaching its peak. Historical data shows that the cyclical peak of the memory market occurred in 2008, 2012, and 2018, and SanDisk is unlikely to be an exception.
Samsung has always prioritized market share over profit margins in the past 30 years and has directly pushed high-end SSD products to SanDisk's key customers this time, pledging not to sell products below a 50% gross margin. The current supply shortage at SanDisk is only a temporary capacity bottleneck, and this is just a "scarcity illusion" that could disappear at any time in an earnings conference call.
Citron emphasized that shorting SanDisk stock is a strategy to position ahead of the cycle adjustment. When the memory market returns to normal, SanDisk's stock price may have already experienced a significant decline.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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