In early pre-market trade the stock is down $17.37 (-12.25%) at $124.37.
From Investor's Business Daily, 05:18 PM ET 11/26/2024:
Dell Technologies (DELL) stock tumbled late Tuesday after the tech hardware company reported mixed fiscal third quarter results. Earnings beat estimates while sales came up short despite strong growth from AI-related server sales.
Dell said in a news release that it earned an adjusted $2.15 per share on sales of $24.4 billion for the October-ended quarter. Analysts polled by FactSet projected the Round Rock, Texas-based company would post adjusted earnings of $2.06 per share on sales of $24.7 billion.
Revenue grew 10% while adjusted earnings increased 14% year-over-year.
On a call with analysts, company officials guided for sales of $24.5 billion at the midpoint of its range for its current January-ending quarter. That was below consensus analyst forecasts of $25.6 billion in sales for Dell's fiscal fourth quarter, according to FactSet.
On the stock market today, Dell stock fell more than 10% to 127.28 in after-hours action.
Dell Stock: AI Server Boost
Prior to earnings, Dell stock fell 1.7% in Tuesday trading. Shares have gained 87% this year, helped by Dell's position as a provider of servers to power artificial intelligence workloads.Dell Chief Operating Officer Jeff Clarke said in the earnings release Tuesday that AI is "a robust opportunity for us with no signs of slowing down."....
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The stock is approaching the bottom of the gap from October 29/30; $122.07 - $125.45 at which point we would give it a rating of 'yummy'. Or maybe that's just pre-Thanksgiving anticipation.
