Dell's AI Demand Ignored 🔍

And, HP calls out Trump tariffs.

February 28, 2025

Today is Friday, February 28, 2025.

The Early Bird Index today is 72.66

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Dell's AI Demand Ignored 🔍

Dell Technologies (NYSE: DELL) posted mixed financial earnings results on Thursday, sending the stock down 1.23% in after-hours trading.

Financials: Dell reported earnings of $2.68 per share in the past quarter, which was better than expected. However, revenue was only $23.9 billion, which was lower than expected.

Details: Revenue for servers and networking grew 37% due to strong AI and traditional server demand. The company also raised its dividend by 18% and approved a new $10 billion stock buyback.

Yes, But: Investors were concerned that revenue came in lower than expected. The outlook for the current quarter is cloudy. Dell also announced it is revising past financial statements due to an error.

Early Bird’s Nest Egg Gains: While Dell is experiencing strong demand for AI servers, the company faces several challenges.

  • Supply chain issues pose significant risks to Dell's AI server growth trajectory.

  • The AI server market is highly competitive, which could impact Dell's market share and pricing power.

Final Thoughts: Dell’s stock is up 17% in the last 12 months.

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Notables

Notable Earnings Today: FuboTV (NYSE: FUBO), ANI Pharmaceuticals (Nasdaq: ANIP), Integral Ad Science (Nasdaq: IAS), Northwest Natural (NYSE: NWN), Owens & Minor (NYSE: OMI), PAR Technology (NYSE: PAR), Chart Industries (NYSE: GTLS), Fulgent Genetics (Nasdaq: FLGT), Alpha Metallurgical Resources (NYSE: AMR), Apellis Pharmaceuticals (Nasdaq: APLS), TeraWulf (Nasdaq: WULF), 1stdibs.com (Nasdaq: DIBS), AES (NYSE: AES).

Notable IPOs Today: Fifth Era Acquisition Corp I Units (Nasdaq: FERAU), Live Oak Acquisition Corp. V Units (Nasdaq: LOKVU), NewHold Investment Corp III Units (Nasdaq: NHICU).

Notable Equity Crowdfunding Campaigns Ending Today: N/A.

Notable Economic Events Today: Core PCE Price Index / PCE Price Index (8:30 a.m. ET), Goods Trade Balance (8:30 a.m. ET), Personal Spending (8:30 a.m. ET), Retail Inventories Excluding Auto (8:30 a.m. ET), Chicago PMI (9:45 a.m. ET).

HP Calls Out Trump Tariffs

HP (NYSE: HPQ) fell 3.86% in after-hours trading on Thursday after posting mixed financial earnings results.

Financials: HP reported earnings of 74 cents per share in the past quarter, which is in-line. Revenue was $13.5 billion, which was better than expected.

Powering the Story: The company posted a weak outlook for 2025. HP blamed the bad outlook on the added cost driven by new U.S. tariff increases.

Final Thoughts: HP also plans to conduct layoffs to cut costs.

NetApp Sales Fall Short

NetApp (Nasdaq: NTAP) plunged 13.87% in after-hours trading on Thursday after the data infrastructure company reported lower-than-expected revenue in its financial results.

Financials: NetApp reported earnings of $1.91 per share in the past quarter, which is in-line. However, revenue was just $1.64 billion in the quarter, which was lower than expected.

Final Thoughts: The company’s stock is up 35% in the past 12 months. It could be a tough 2025 for the stock.

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.