SanDisk (SNDK) Tops Volatility Ahead of Earnings...17% Surge/Plunge Warning

▲ SanDisk (SNDK)/AI generated image

The expected volatility of SanDisk (SNDK) before and after its earnings announcement soared to 17.47%. The stock, which surged 423.2% this year, is once again facing significant volatility.

According to Benzinga on August 2 (local time), an analysis of option prices for U.S. listed companies with a market capitalization of over $50 billion revealed that SanDisk had the highest expected volatility. Expected volatility is the rate of fluctuation reflected by the options market in stock prices before and after earnings announcements. SanDisk will announce its earnings after the market closes on August 5. Market expectations are for revenue of $8.39 billion and earnings per share of $34.45.

Key factors for the earnings announcement include NAND flash prices, demand for enterprise SSDs for AI, and gross profit margin. SanDisk's stock has risen 423.2% this year, ranking first among the 10 surveyed companies in terms of growth rate. Western Digital (WDC) rose 222.2%, and Datadog (DDOG) rose 99.9%. The expected volatility for these two companies was recorded at 13.39% and 12.88%, respectively.

AppLovin (APP) is expected to have a volatility of 12.96%, Cloudflare (NET) 12.68%, and Shopify (SHOP) 12.47%. AppLovin fell 42.1% this year, showing the largest decline among the surveyed companies. Shopify also dropped 26.5%, but Cloudflare rose 42.4%. For these three companies' earnings, advertising business, demand for AI products, transaction volume, and operating profit margin were cited as key indicators that would influence stock reactions.

DoorDash (DASH) had an expected volatility of 10.12%. Novo Nordisk (NVO) followed with 9.65%, Petróleo Brasileiro (PBR) with 9.58%, and Constellation Energy (CEG) with 9%. For DoorDash, total orders and grocery business growth were key; for Novo Nordisk, prescription trends for Wegovy and Ozempic; for Petróleo Brasileiro, production volume and refining margin; and for Constellation Energy, data center power contracts were presented as critical variables.

Following SanDisk, the expected volatility for five stocks—Western Digital, AppLovin, Datadog, and Cloudflare—exceeded 12%. The options market reflected that earnings announcements in the first week of August could significantly impact the stock prices of memory semiconductors, AI software, and digital advertising sectors.

[Article Summary]

-SanDisk's expected volatility before and after its earnings announcement was recorded as the highest among the 10 surveyed companies, at 17.47%.

-SanDisk's stock rose 423.2% this year, and the market expects revenue of $8.39 billion and earnings per share of $34.45.

-Western Digital, AppLovin, Datadog, and Cloudflare also reflected a potential surge or plunge of over 12%.

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