That was bad. The CEO showed a TAM of the year 2025, 27 to 30b in total revenue, that will be split between the 3 HDD companies, data from McKinsey. That is 10b each. Lower revenue than this year with costlier energy assisted products.
And raise the dividend to start in January to keep stock from free falling until execs can sell all of their shares. Stick down 10 percent anyway.
Any other opinions of event you can watch from investor relations site.
Sure sell your stock just do not stand up in front of thousands of employees at global all hands meetings and talk about how bullish you are on the future of the company. Let's be honest, it is not like these execs need the money and have to sell.
Execs stock are sold by choice after they invest. So execs sell immediately, some go long. Lastly they are on a blackout period that also includes approval from multiple groups to prevent insider trading. I'm certainly jealous how much stock they make but that's how the system works. maybe another 20 years with the company I'll become the CFO. Or homeless. Both sound like sh–y positions to be in.
We all knew or told by execs that stx would have have a few tough years and then get back to growth as IT 4.0 takes off. For the first time we saw in this presentation data from a top consulting firm, McKinsey, that showed total HDD revenue in 2025 would be $27-30b. At best stx would have 33 percent share if it can execute but has shown to be second or third to market at every capacity point for at least the last 5 years.
I don't like the comment putting someone down for being disappointed in learning they have been lied to by the entire leadership team for years. We want to believe and the talking points sounded good especially when echoed by SVPs and EVP s. We should have seen the signs by people closest to the future of the company who know a lot more than we do suddenly leave - when the CFO left, CTO gone, corporate strategy VP left, and others close to senior executives disappeared .
This company has no strategy. It is run by activist investors who are wanting further cuts to the business to gain more cash. The goal is to make this business as lean as possible to send every penny back to investors.
The CEO did sell $5m in shares before the investor event. Let's see who else sells.
No innovation, can't compete in SSD, and poor exec decisions ruined the company
All this talk about "...disappointing." What? You write as if you didn't know Seagate was circling the drain, as if you just found out in the meeting that Seagate is not Apple. When you work for a dying company, give up future plans there, and get used the the smell of death.
BTW, watch for execs selling large lots of stock. Many of these trades are required to be public information, so you can see them (like at gurufocus dot com slash insider slash summary). This is a sure indication of the rats jumping the ship. You can bet it will happen.
Thanks for pointing out this presentation. At first it was the same rehashed IT 4.0 dreaminess we have seen at all hands meetings for the last 2 to 3 years. It became interesting to see it quantified and it was surprising revenue for all HDD companies would total 25 to 30 billion out in the year 2025. All of the optimism is completely gone as the execs can get away with lying to employees but would be illegal to lie to investors at this meeting. Best case scenario stx is 9b in revenue 6 years from now continuing negative growth. With all of the poor execution the last 10 years it can easily be half of this revenue as this continues. It was also surprising that the dividend is being raised. The transition to hamr is difficult and costly and explains the closure of Cupertino and expectation of probably Shakopee, and sale of SSD and systems to focus on high cap HDD only. This is all familiar to posts in this forum. I still have 20 years to retirement and I was caught up in the exec talking points that showed the promise of future growth which is now clear was only an illusion created by the CEO and his team. Wow. Disappointing.
Lot's of slides about evolving datasphere and changing tech, but lacking in actual product information and competitive proposition build. If I'm an investor I'm still left wondering why I wouldn't put money in market share leader WD instead. Oh, yes I also noticed no slides on market share either for any class of products. No product comparisons? Hmmmm. Seems fishy. Promises promises.
Rev up your layoffs - Scotty Kilmer.
No real guidance for next year was strange. CFO showed bar graphs with weird fuzzy bars for next year. The entire presentation did not build confidence in the company. Also no mention of SSD or systems. WD sold their systems business yesterday. At presentation STX CEO referred to SSD as a supply agreement. I would not expect SSD or systems to be part of stx next year at this time.