Citron Research shorted, causing SanDisk's stock price to fall

LootboxPhobia · 2026-02-25T02:34:59+00:00

Citron Research announced a short position on SanDisk, with the stock initially falling but then rebounding. The firm expressed concerns about competition and cyclical pressures in the memory market and pointed out that Samsung is focusing on market share. Citron believes SanDisk's pricing differs from NVIDIA's and warns that the current supply constraints may be just an illusion, and the stock price will decline in the future.

LootboxPhobia

2026-02-25 02:34:59

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Investing.com - On Tuesday, short-selling firm Citron Research announced a short position on memory chip manufacturer SanDisk, causing the company’s stock to decline. However, the stock quickly recovered from the dip and turned higher during the trading session.

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The stock has surged 175% this year and has more than tripled over the past 12 months. After Citron’s announcement, the stock initially fell 1%, but then rose 1% on buying interest.

Citron Research expressed concerns about cyclical pressures in the memory market and increasing competition from Samsung. The firm commented: “Citron is short $SNDK — the top won’t ring the bell. We don’t need Anthropic to announce they’re making NAND. Samsung is already an 800-pound gorilla, and they’ve been using this strategy for 30 years.”

The short-selling firm pointed out that Western Digital recently sold a large portion of its SanDisk shares at a price 25% below current levels, signaling a warning. Citron believes the market is pricing SanDisk similarly to Nvidia, but highlights a key difference: “Nvidia has a moat. SanDisk is selling commodities.”

Citron emphasized Samsung’s historical strategy of prioritizing market share over profit margins during memory cycles, citing similar patterns in 2008, 2012, and 2018. The firm noted that Samsung recently announced it would not sell products with profit margins below 50% and is pushing high-end chips into the same SSD market operated by SanDisk.

Citron commented: “Capacity at twice the 2018 peak is building up, and this ‘shortage’ is an illusion of supply that could disappear in a quarterly earnings call.” The firm implied that current supply constraints are only temporary.

The firm summarized: “Short $SNDK is like skating toward where the puck is going. When the cycle normalizes, this stock will be much lower.”

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