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The 'Dawn Of The Zettabyte Age'... Wait, What's A Zettabyte?

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The 'Dawn Of The Zettabyte Age'... Wait, What's A Zettabyte?

An IDC report describes the “global datasphere” as the total of data created, captured, and replicated, which is distinctive not only for its unprecedented size but for its rapid evolution.” BTIG's Edward Parker explained in a report that while data is driving many successful companies' valuations, the role played by data storage “isn’t being adequately recognized.”

Parker noted that although data is recognized as valuable, the infrastructure required for its storage and protection, and the ability to provide access to that data seem undervalued. The low valuations for storage stocks, especially HDD vendors like Seagate Technology PLC (NASDAQ: STX), illustrates this point. The analyst reiterated a Buy rating and a price target of $55 for the company.

What Are Zettabytes?

    "Zettabyte. /ˈzedəˌbīt/. Noun: zettabyte; plural noun: zettabytes; noun: ZB; plural noun: ZBs. 'A unit of information equal to one sextillion (10^21) or, strictly, 2^70 bytes.' According to Wikipedia, 1 ZB is equivalent to 152 million years of ultrahigh definition 8K video format."

The total data being created and captured is expressed in terms of zettabytes. Data is expected to grow to 163 zettabytes by 2025 and is expected to evolve “from something that enhances our lives to something that is critical to most human activity,” Parker mentioned.

The analyst added that a bearish view on HDD storage technology is not “logically consistent” with a bullish assessment of “data growth” companies, since the valuation of such companies is based on the “increasing value of data in our society.” The valuation gap suggests that one of these sectors is “mispriced.”

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Latest Ratings for STX

DateFirmActionFromTo
Jan 2021WedbushMaintainsNeutral
Jan 2021Deutsche BankMaintainsHold
Jan 2021B of A SecuritiesMaintainsUnderperform

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