3 Reasons Investors Should Be Bullish About Dell
Dell Technologies (NYSE: DELL) recently released its fiscal 2020 third-quarter results, and although there were many positive aspects to the report, the stock fell in the days that followed. That decline was apparently due, in large part, to management's downward revision to its fiscal Q4 forecast.
However, there are three reasons why investors should still be bullish on the stock.
Previously, Dell had projected its revenue for the fiscal year would land between $92.7 billion and $94.2 billion. However, after its revenue for Q3 (which ended Nov. 1) came in at $22.84 billion -- below the $23.04 billion that analysts had been expecting -- the company cut its annual guidance to a range of $91.5 billion to $92.2 billion. That's not a huge adjustment. The bigger concern embedded in that guidance change relates to Intel's ongoing chip shortage. Despite Intel's efforts to ramp up its production of processors for PCs, demand continues to exceed supply, which Dell COO Jeffrey Clarke said has hindered his company's PC business. As a result, Dell had to reduce its forecast for the fourth quarter, and the full year as well.
Source Fool.com
