economy
What flash memory maker SanDisk told investors this week is a boon for our newest stock
Every weekday, the Investing Club releases the Homestretch; an actionable afternoon update just in time for the last hour of trading.
TL;DR
- Stocks declined, but the S&P 500 is still on track for a weekly gain despite mixed economic signals.
- July retail sales unexpectedly fell, raising concerns about consumer spending.
- Bond yields and oil prices increased slightly.
- SanDisk presented a new financial model expecting sustained high gross and operating margins from FY2028-2030.
- These new models aim to structurally reset margins higher and reduce cyclicality for memory companies like Micron.
- SanDisk plans to return 100% of excess cash to shareholders from FY2028-2030.
- Micron may follow a similar strategy, potentially buying back a significant portion of its market cap.
- Next week features earnings reports from major retailers and other companies, providing insights into the U.S. consumer's health.