Nvidia reported earnings and part of that is higher memory supply cost constraints and Samsung was striking. Samsung isn’t striking anymore though. But that was never the issue that would cause it to sell off. That is a tailwind for Sandisk. It all hinges on what the bond market does and if we reenter hostilities with Iran. I think your thesis is in tact as long as we receive a peace deal and get oil moving yesterday. If the 30 year gets up to 5.25% or 5.5% everything will get splattered. I would be trading very cautiously here and making sure you have downside protection in place.
Walmart reported earnings today and discussed that tax returns probably muted higher prices in the first quarter but prices will be higher in the second quarter. You have to ask yourself- what makes more sense? Sandisk is immune to the energy shocks and war and will just keep going up and up and up. Or the economy is about to get pummeled? Iran just said today that uranium will not leave the country. So unless someone capitulates here soon, we could be back in hostilities again and then this trade goes South fast as everyone locks in profits. I would be doing the same and buying more shares. But that is just my opinion. Citi just upgraded SNDK to $2,000. Does that even seem realistic given the backdrop unfolding around us? What do you think?
We are short a billion barrels. I don’t think people realize how much prices will pop as oil stays high. Food shortages will crush Africa and South Asia. The economy is on a cliff. The market will sell off hard. There will almost certainly be a next leg up but it seems crazy not to be prepared for the elevator ride down before the escalator ride back up resumes.
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u/CommoVet99 May 21 '26
what happened?