Stock markets praised Seagate (STX), a storage supplier, for posting phenomenally strong quarterly results. STX stock gained 19.14% on Wednesday.
The storage firm earned $3.11 on a non-GAAP EPS measure. Revenue of $2.83 billion is up 21.5% Y/Y. The solid EPS guidance is the best part of the report. HAMR shipments are ramping up. Customers want higher-capacity drives, so the improved mix is lifting demand. The firm is fully allocated in its capacity for the entirety of 2026.
Carvana (CVNA), which sells used vehicles, lost 14.17% yesterday. Gotham City Research published a short report against the stock. Although the research did not give investors anything new, it has several key takeaways. First, the firm believes that Carvana is selling poor-quality subprime loans to third parties at inflated prices. This inflates Carvana’s profits.
Gotham believes the loans scheme is unsustainable, since the related third parties are over-leveraged. They will lose the ability to sell debt. That would cut the demand for Carvana’s loans.
Be wary of Carvana’s profits evaporating once those third parties cannot raise more debt.
Amphenol (APH) lost 12.2% to close below $146. Trading at a premium before the Q4 report, the firm posted revenue of $6.44 billion (+49.1% Y/Y). In Q1, it is forecasting sales of up to $7.0 billion. EPS of $0.93 is above consensus estimates. Consider watching APH stock. The strong results should lift its share price.
