Wednesday, April 17, 2024

Dell Well Positioned For The New Tech Environment

Datamation content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

If technology is becoming a commodity, then Dell may be the best-positioned tech company of them all.

In an environment where price has become a top priority, Dell’s first-rate execution is enabling the company to grow far faster than the rest of the field. Global shipments were up 29% in the first quarter – while the rest of the industry suffered a 1% decline – and server shipments grew four times faster than the industry average. Storage revenues, a small but growing part of Dell’s business, surged 65%.

If Dell’s entry into the printer business goes as well, HP will have its work cut out for it.

DELL stock fell 3% on Friday because its results and guidance merely met expectations. Salomon Smith Barney downgraded the stock based on valuation.

As we said last night, the stock is overvalued, perhaps by 20% or more. But Dell may be the one company where a little irrational exuberance is justified.

The broader market fell on mixed economic reports: falling consumer prices, disappointing housing starts and a weaker than expected semiconductor book-to-bill ratio, but Michigan consumer sentiment came in better than expected.

The Nasdaq fell 12 to 1538, the S&P 500 slipped 2 to 944, and the Dow lost 34 to 8678. Volume rose to 1.5 billion shares on the NYSE, but declined to 1.77 billion on the Nasdaq. Advancers led by a few issues on the NYSE, but decliners led 18-12 on the Nasdaq. Upside volume was 54% on the NYSE, and 42% on the Nasdaq. New highs-new lows were 244-3 on the NYSE, and 169-11 on the Nasdaq.

Overture soared 17% on praise from Yahoo – which also had some investors thinking “buyout.” Yahoo tacked on 0.9%.

AskJeeves surged 11% on a deal with Google.

eBay faltered at the $100 level, but still managed a gain for the day.

Alcatel rose 0.7% on a router acquisition. Gartner, meanwhile, said the router market has stabilized, and that Cisco continues to dominate.

Microsoft slipped 0.85% on yet another security flaw.

RealNetworks slipped 1.25% on the resignation of the company’s CFO.

Market Commentary: For our free daily market commentary and technical analysis, please visit the InternetStockReport.com home page at:

http://www.InternetStockReport.com.

Subscribe to Data Insider

Learn the latest news and best practices about data science, big data analytics, artificial intelligence, data security, and more.

Similar articles

Get the Free Newsletter!

Subscribe to Data Insider for top news, trends & analysis

Latest Articles