Shares of companies in the memory and storage space such as Micron (MU), Western Digital (WDC), and Pure Storage (PSTG) are falling in Wednesday trading after analysts reiterated their views of a downturn in the group. According to TrendForce, a global provider of market intelligence on the technology industries, the most current research of the PC DRAM market indicates "that most contracts are now monthly deals rather than quarterly deals," with the current quarterly decline dropping to almost 30%. MICRON ESTIMATES CUT: Cleveland Research analyst Chandler Converse reiterated a Neutral rating in Micron and told investors in a research note that weaker than expected pricing feedback for Q1 and Q2 has caused him to lower his EPS and revenue assumptions for FY19. He lowered his FY19 revenue view to $24B from $25.5B and is modeling FY19 EPS at $6.48, citing growing pricing headwinds, inventory risks, and soft demand, which create challenges to a recovery in the second half of the year. Susquehanna analyst Mehdi Hosseini offered a similar view in his report out Wednesday, writing that "recent industry checks suggest DRAM and NAND pricing in 1H19 are tracking below prior expectations." PRICE ACTION: Shares of Micron are lower by almost 5% to $38.15, while Western Digital is down over 4% to $48.66 in afternoon trading. PEERS ALSO LOWER: Shares of Pure Storage (PSTG), Seagate Technology (STX), Teradata Corporation (TDC) are all lower in afternoon trading.
