Weak outlook says sell Dell
Dell (DELL) stock tanked Thursday after the PC maker said it continues to struggle against strong competition amid a slowdown in U.S. sales. Dell said third-quarter earnings rose 27% from a year ago, on 9% revenue growth. But Dell’s outlook for the fourth quarter was less than sanguine, with the company highlighting its focus on “strategic priorities that will provide better value to customers while driving a more optimal balance of liquidity, profitability and growth.” Statements like that are never a good sign, because when execs have good news to offer investors they typically don’t hide it behind nonstatements about strategic priorities. And Dell adds that results in coming quarters “could be adversely impacted by a slower decline in component costs and a seasonal shift in mix to U.S. consumer and international regions.”
Bottom line: Expect the company to keep cutting costs while it struggles to fashion a way out of its slow-growth doldrums.
My apologies. Dell did “tank”. It went down 10% in after-hours trading.
What’s going on? Dell didn’t “tank” today. It went up 1.6% on heavier volume.
In a world stuck on globalization I find it interesting how you left out the 32% increase in revenue across the sea.
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Look, it’s a falling star…no, wait…it’s only Dell stock plummiting in the after-market. Weeeeeeeeeeee.