At least in the US, politicians are selling 2:1 bs buying. Something is about to go down or they are getting ready to dump money into the Anthropic IPO. Or maybe to fund mid term campaigns. What are you guys thinking?

https://sharevalue.ai/politicians?view=stocks

WDC Earnings (Oct 22): The Most Important Earnings Report Since the AI Storage Boom Began?

I've been digging through the numbers, and I think many investors are missing how important this upcoming earnings report could be.

The stock is roughly 20% below the August highs, yet the business appears stronger today than it was when the stock was setting records.

That disconnect is what makes this earnings report so interesting.

📊 Current Setup

WDC Today

• Share Price: ~$397
• Trailing P/E: ~16x
• Market Cap: ~$146B
• Expected Q1 FY27 EPS: ~$4.00

For a company still experiencing strong AI-driven storage demand, that is not an expensive valuation.

The Key Observation

>In August, WDC traded above $500 while quarterly EPS was $3.56.
>
>Today, WDC trades around $397 while management is guiding for approximately $4.00 EPS.
>
>Earnings power is moving UP while the stock price moved DOWN.

✅ Five Straight Earnings Beats

Quarter	EPS Estimate	EPS Actual	Beat
Q4 FY26	$3.31	$3.56	+7.6%
Q3 FY26	$2.40	$2.72	+13.3%
Q2 FY26	$1.93	$2.13	+10.4%
Q1 FY26	$1.59	$1.78	+11.9%
Q4 FY25	$1.48	$1.66	+12.2%

Notice the Pattern

WDC has beaten earnings expectations in 5 consecutive quarters.

The question is no longer:

>"Can WDC beat estimates?"

The real question is:

>"Can management provide guidance strong enough to force analysts to raise FY27 estimates again?"

🤔 If They Keep Beating, Why Did The Stock Drop?

This is where things get interesting.

January 2026

• Earnings beat expectations
• Stock fell roughly 10% afterward

August 2026

• Revenue grew 44% YoY
• EPS grew 109% YoY
• Revenue beat
• EPS beat
• Stock still fell roughly 13%

At first glance, that seems irrational.

But the market wasn't disappointed with the results.

The market was disappointed relative to extremely high expectations.

The stock had already gone nearly parabolic heading into those reports.

When expectations become perfect, even excellent earnings can turn into a sell-the-news event.

🔄 Why This Quarter Feels Different

August Setup

✅ Stock near highs

✅ AI trade crowded

✅ Sentiment extremely bullish

✅ Expectations sky-high

October Setup

✅ Stock down more than 20% from highs

✅ Sentiment significantly weaker

✅ Expectations reset

✅ Valuation far more reasonable

That's a much healthier setup going into earnings.

🎯 What Bulls Need To See

If WDC reports:

• Revenue above $4.1B
• EPS above $4.00
• Continued margin expansion
• Strong demand commentary
• Positive AI storage outlook
• Higher FY27 guidance

Then investors may begin re-rating the stock again.

Remember:

>WDC is no longer being valued like an unstoppable AI winner.
>
>The stock has already been derated.
>
>That lowers the hurdle considerably.

📈 Historical Earnings Reactions

Quarter	Next-Day Move
Aug 2026	-13.0%
Apr 2026	-0.7%
Jan 2026	-10.1%
Oct 2025	+8.8%

One thing is clear:

WDC tends to move BIG after earnings.

There is very little history of this stock simply drifting after a report.

🧠 My Investment Thesis

I don't think bulls need a perfect quarter.

They simply need confirmation of four things:

1. AI storage demand remains strong.
2. Nearline HDD demand continues growing.
3. FY27 earnings estimates are still too low.
4. The August selloff was valuation compression, not business deterioration.

If those four points are confirmed, the market may start focusing on earnings growth again rather than the recent stock decline.

🚀 The Valuation Disconnect

This is the most bullish data point to me:

August Earnings

• Stock Price: ~$520
• Quarterly EPS: $3.56

Today

• Stock Price: ~$397
• Guided Quarterly EPS: ~$4.00

Let That Sink In

The stock is down more than 20%.

Expected earnings are up.

Sooner or later, one of those has to adjust.

TL;DR

• WDC has beaten earnings 5 straight quarters
• Stock is down 20%+ from highs
• Earnings power continues to improve
• Expectations have reset
• Valuation is far more attractive than it was in August
• The real catalyst is not the beat itself, but whether FY27 guidance goes higher

Disclosure: Long WDC.

What am I missing? I'd genuinely like to hear the bear case.

”you hang up…” ☺️ 🇷🇺
“No you hang up” 😊 🇺🇸

Iran is close to collapse 🇺🇸 💪