Seagate (STX) Stock Drops 4% After Record Earnings. Why Are Investors Selling?

TLDR Seagate (STX) fell 4% to $643.59 in premarket trading Wednesday after reporting record quarterly earnings. Adjusted EPS came in at $7.68 on revenue of $4.23 billion, both above Wall Street forecasts. Second-quarter guidance of $9.20 EPS on $4.8 billion revenue also topped analyst estimates. Capital spending of $211 million beat the $202 million analysts expected, a point that worried investors. Baird raised its price target to $1,350 from $1,080 and kept an Outperform rating. Seagate (STX) stock fell 4% to $643.59 in premarket trading Wednesday. The drop came after the hard-drive maker posted record quarterly results . The stock had gained 4% in regular trading on Tuesday. Seagate Technology Holdings plc, STX Even with the pullback, the stock has risen 143% so far this year.

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