Micron and Western Digital Stocks Drop After Seagate’s Earnings Miss. It’s the Economy.

Shares in Micron Technology and Western Digital were tumbling Friday after memory-tech peer Seagate Technology blamed weaker-than-expected earnings and a shaky sales outlook on a rough economic environment.

Seagate (ticker: STX) stock was down 13% in premarket trading Friday after the company said it was reducing its planned production in response to softer demand. Seagate reported earnings per share of $1.59 on revenue of $2.6 billion, missing Wall Street’s estimates of $2.78 billion in sales and the company’s own forecast of $2.8 billion. The earnings figure fell well short of the $1.89 a share expected by analysts.

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