Western Digital Corporation Shares Are Down Today: What's Going On?

Western Digital Corporation WDC shares are trading lower Monday after the company announced the completion of its planned separation of the flash business Sandisk.

What To Know: Western Digital previously outlined its intention to split its hard disk drive (HDD) and flash memory businesses into two separate entities. The move, which was finalized today, allows Western Digital to focus solely on HDDs while Sandisk will operate independently as a pure-play flash storage company.

The decline in share price suggests investor concerns about Western Digital’s future without its flash segment, which had been a key revenue driver. The company recently held an Investor Day event, when it detailed its long-term strategy for the HDD market.

Following the separation, Western Digital’s leadership team includes Irving Tan as CEO and Don Bennett set to take over as interim CFO after Wissam Jabre steps down on Feb. 28, 2025. The company’s board also saw changes, with Martin Cole becoming the new board chair and Bruce Kiddoo and Roxanne Oulman joining as new directors.

Western Digital's decision to spin off Sandisk marks a major shift in its business structure but the market reaction potentially indicates skepticism about the company's growth prospects moving forward.

WDC Price Action: Western Digital Corporation shares were down 5.58% at $49.02 at market close Monday, according to Benzinga Pro.