Seagate Technology (NASDAQ: STX) , one of the largest HDD (hard disk drive) makers in the world, is often considered a slow-growth stock. Demand for platter-based HDDs has waned in recent years, and they're gradually being displaced by flash memory-based SSDs (solid-state drives), which are smaller, faster, more power-efficient, and less prone to damage.
Unlike its main competitor Western Digital (NASDAQ: WDC) , which bought the flash memory chipmaker SanDisk in 2016 to expand its SSD business, Seagate still generates most of its revenue from traditional HDDs. The critics claim this key difference makes Seagate a weaker investment than WD.
Image source: Getty Images.
For further details see:
Up 60% In 2021, Is It Too Late to Buy Seagate Stock?