Western Digital Stock Has Fallen 53% Since June. I'd Consider a Small Position After Its Latest Report.

WDC has shed 53% since its June peak, even after posting fiscal Q1 2027 results that beat guidance. Revenue rose 55% to $4.38 billion, adjusted EPS jumped 161%, and management lifted the dividend 17%.

The selloff traces to investor worry that hard drive pricing can't hold. That concern persists despite WDC's fiscal Q2 outlook calling for 66-72% growth, an acceleration from the 55% just delivered.

The source analyst sees the setup as favorable for a modest entry. At 15x forward earnings, the valuation arguably embeds a meaningful discount for pricing risk. That is the analyst's framing, not a guarantee, but it suggests the market is already paying for a fade in pricing that guidance doesn't currently show.

The core risk is timing: if pricing declines arrive earlier than expected, the strong guided growth could prove front-loaded, and the multiple could compress further. The analyst's recommendation is deliberately sized small for that reason.

Interpretation: the gap between a 53% drawdown and a guide implying 66-72% growth is the crux of the debate. Bulls are betting current results are durable; bears are betting they are peak.