American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Investing

Red alert as the Dell stock price forms a risky pattern ahead of earnings

by admin November 22, 2024
November 22, 2024
Red alert as the Dell stock price forms a risky pattern ahead of earnings

Dell stock price has bounced back in the past few weeks as investors wait for the upcoming earnings, which will provide more color about its business. After bottoming at $86.95 in August, it has rebounded by almost 60% to trade at $138.85, giving it a market cap of over $87 billion.

Dell earnings ahead

Dell Technologies is a top American technology company best known for its laptop and desktop computers. Data shows that it has the third-largest market share in the PC industry after Lenovo and HP. 

The company has also expanded its business to other solutions, which it classifies as Infrastructure Solutions Group (ISG). This division includes products like servers, storage, and virtualization software. 

As a result, Dell has become an important part of the artificial intelligence industry, where it provides products to companies like Microsoft, Amazon, and Google that operate large data centers globally. Dell competes with firms like Super Micro Computer and HP Enterprise. 

A small part of Dell’s business is in finance, where it provides finances to some of its biggest customers. 

Dell stock price has done well in the past few years, helped by the growth of key areas like artificial intelligence and machine learning. 

The PC industry has also bounced back after going through major headwinds a few years ago. Also, the company has sold its VMware business to Broadcom for over $60 billion. It has jumped by 432% in the past five years, beating its closest rivals like HP and Cisco. 

The next key catalyst for the Dell stock price will be its earnings, which are scheduled to happen on Tuesday next week. These will be important numbers because they will provide more color about the state of its business. 

Just this week, NVIDIA said that its AI business continued firing on all cylinders as its revenue jumped to over $37 billion. Palantir, another top name in the AI industry continued doing well during the quarter.

Analysts anticipate the results to show that Dell’s business continued doing well last quarter. Precisely, they expect its revenues to come in at $24.7 billion, a 11% increase from what it made last year. 

Analysts expect that its fourth-quarter revenue will be $25.53 billion an increase of 14.3%, leading to an annual figure of over $97.5 billion. The company will then cross the $100 billion revenue in 2025.

Dell has a long record of beating estimates

There are chances that Dell’s results will be better than expected because it has a long record of doing well. 

The most recent financial results showed that Dell’s revenue rose by 9% to $25 billion in its fiscal second quarter. Its operating income rose to $1.3 billion. 

Most of its revenue growth was in its infrastructure solutions segment whose revenues jumped by 12% to $24.1 billion. Its client solutions revenue fell by 4% to $12.4 billion as PC weakness persisted. 

Dell has also worked hard to improve its balance sheet. It used part of its VMware proceeds to pay down its debt, which has now reduced from over $28 billion in 2021 to $14.8 billion. Paying back its debt helps it to increase its shareholder returns over time. 

Dell is also fairly valued since it trades at a price-to-earnings ratio of 17, lower than the sector median of 24. Its forward EV-to-EBITDA of 10 is lower than the industry median of 14.

Dell stock price analysis

Dell chart by TradingView

The daily chart shows that the Dell share price has been in a slow bullish trend in the past few weeks. It has risen from $87.16 in August to $140. It has moved above the 50-day and 100-day Exponential Moving Averages (EMA).

However, the stock has formed a rising wedge pattern, which is a popular bearish sign in the market. This pattern often breaks down when the two lines near their confluence level. 

The MACD and the Relative Strength Index (RSI) have formed a bearish divergence chart pattern. Therefore, there is a likelihood that the stock will have a bearish breakdown in the coming weeks. If this happens, the next point to watch will be at $120. However, a break above the key resistance level at $150 will invalidate the bearish view.

The post Red alert as the Dell stock price forms a risky pattern ahead of earnings appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
CrowdStrike stock forecast: will it hit its ATH after earnings?
next post
Axie Infinity price could surge 50% amid the network renaissance

Related Posts

Can Mining Finally Go Millennial? Experts Talk Strategies...

March 13, 2024

Lancaster Resources Acquires Piney Lake Gold Property

April 12, 2024

Fortune Minerals

February 13, 2024

ASX Retraction Statement

August 2, 2024

USD/KRW: How low can the South Korean won...

December 5, 2024

After XRP ETF approval, here are other top...

January 19, 2025

WOA Proprietary Technology Successfully Adapted to Produce Pea...

July 9, 2024

After Klarna IPO, is UK’s crypto-friendly neobank Revolut...

November 14, 2024

Nuclear Fuels

February 15, 2024

OTCQB Venture Virtual Investor Conference Presentations Now Available...

August 3, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Kraft Heinz plans breakup, weighs $20 billion grocery spin-off: report

      July 13, 2025
    • Trump’s 50% tariff on Brazil imports to brew trouble for Starbucks and Dutch Bros

      July 13, 2025
    • US to announce 30% tariff on EU and Mexico says Trump

      July 13, 2025
    • Why India is rushing to build bigger banks and what’s standing in the way

      July 13, 2025
    • Wall Street braces for weakest earnings season since 2023 amid market highs

      July 13, 2025

    Categories

    • Business (3,388)
    • Investing (2,615)
    • Latest News (2,017)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved