SanDisk Shares Fall 6.5% on Citron Warning, ETF Hits $650M AUM
SanDisk shares slid up to 6.5% after Citron Research warned its cyclical NAND business lacked Nvidia-style moat, before recovering 6% following a power inflow signal. Meanwhile, the Tradr 2X Long SNDK ETF amassed $650m in AUM in 24 days, and the spin-off from Western Digital has outperformed since Feb 2025.
1. Citron Research Issues Bearish Thesis
SanDisk shares plunged 6.5% after a short seller argued the company’s NAND memory business lacks the durable AI-driven pricing power of structural leaders, warning that cyclical supply gluts and margin pressure could cap valuations if investors reclassify it from an AI growth stock to a commodity vendor.
2. Tradr 2X Long SNDK ETF Sees Rapid Asset Inflow
The newly launched 2X Long SNDK Daily ETF gathered $650 million in assets under management within 24 days of its January 27 launch, averaging over $27 million in net inflows per day and marking it as the fastest-growing ETF introduced in the past year.
3. Technical Signal Sparks 6% Recovery
A key power inflow trading signal triggered a 6% rebound in SanDisk shares, reflecting short-term investor buying pressure. This technical indicator suggests momentum traders view the recent sell-off as overextended, potentially setting a floor if broader memory chip sentiment stabilizes.
4. Spin-Off Driving Premium Valuation
Since the February 2025 separation from Western Digital, SanDisk has outpaced peers, with its stand-alone Memory Solutions segment benefiting from clearer market focus and multiple expansion tied to AI storage demand forecasts. Investors have rewarded the independent company with a premium valuation relative to legacy integrated structures.