Backblaze Flags Q2 Drive Failure Rise, Sees Outliers Not a Trend

Impact · against what's priced in

The Backblaze report is largely noise for storage providers, as the drive failure spike is attributed to marginal outliers and the price already reflects high near-term demand. Mentions of HAMR and SMR technologies are currently speculative and do not provide a catalyst to overcome the market's skepticism regarding long-term growth rates.

WDC+0.05

Not in the price yet

In context

The projection that Western Digital will reach 100 TB capacity using HAMR is a positive technical milestone, but it does not yet prove the sustained revenue growth the market currently declines to pay for.