Dell Technologies Inc. (DELL) experienced an 11% decline in its stock price during extended trading on November 26, 2024, following the release of its fiscal 2025 third-quarter earnings report. The server and personal computer manufacturer reported revenue that fell short of Wall Street expectations, leading to investor concerns about the company’s performance.
- Dell shares fell 11% after earnings report
- Quarterly revenue missed Wall Street expectations
- Key support levels: $130, $105, $87
- Rising wedge pattern may signal reversal
- Monitor overhead area near $180 for profits
- Record AI server orders reported despite concerns
During the earnings call, Dell projected revenue for the January quarter to be between $24 billion and $25 billion, below the $25.6 billion anticipated by analysts. Despite reporting record orders for artificial intelligence (AI) servers, the company noted caution among customers in its traditional personal computer and storage sectors.
The recent earnings report has raised concerns among investors, particularly as Dell’s stock had previously gained 85% since the beginning of the year, outperforming the S&P 500’s 26% return. The company’s rising wedge chart pattern suggests a potential reversal if the stock price breaks below the lower trendline. Analysts are closely monitoring key support levels, which include $130, $105, and $87, as potential buy points for investors.
Key statistics from the earnings report include:
- Projected revenue for the January quarter: $24 billion to $25 billion
- Wall Street expectation: $25.6 billion
- Stock price after-hours: $125.75
Investors are advised to keep an eye on the $180 level, which represents an important overhead area. This level is near Dell’s all-time high and could serve as a profit-taking point for those who purchased shares at lower prices. The company’s strong performance in AI server orders contrasts with the challenges faced in its legacy PC and storage segments, highlighting a mixed outlook for the future.
In summary, Dell’s stock has faced a significant decline following disappointing earnings, prompting investors to reassess key support levels and potential buying opportunities. The mixed signals from the company’s performance in AI versus traditional markets will be critical as analysts and investors navigate the coming quarters.
