Dell's AI Server Expenses ⚠️

And, MongoDB cuts fiscal year outlook.

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Today is Friday, May 31, 2024.

The Early Bird Index today is 71.82.

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Dell's AI Server Expenses ⚠️ 

The incredible AI-fueled 2024 for Dell Technologies (NYSE: DELL) came crashing down with shares dropping by 17.78% in after-hours trading on Thursday due to mixed financials.

Financials: Dell reported earnings of $1.27 per share in the past quarter, which was lower than expected. Revenue reached $22.2 billion, which was better than expected.

Details: Revenue for the Infrastructure Solutions Group jumped 22% to $9.2 billion. The company reported record servers and networking revenue of $5.5 billion thanks to Dell’s AI push.

Yes, But: The gross margin dropped 4% due to the higher cost of building those AI servers.

Stock Price: Dell was up 127% this year because of AI. Now, the stock is suffering because of AI expenses.

Final Thoughts: Investors should rethink their approach to Dell because of these mixed results.


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Notable Earnings Today: Genesco (NYSE: GCO), BRP (Nasdaq: DOOO).

Notable IPOs Today: Kindly MD, Inc. Common Stock (Nasdaq: KDLY), SmartKem, Inc. Common Stock (Nasdaq: SMTK).

Notable Equity Crowdfunding Campaigns Ending Today: KIN Apparel (Wefunder), Over The Top Ladder (Netcapital), NetWire (Netcapital), Flower Turbines (StartEngine), PhysiSens (Netcapital), ScanHash (Netcapital), Duet (Wefunder), Cust Corp. (Netcapital), Ama’Gees (Honeycomb), Cups and Claws Cafe (Honeycomb).

Notable Economic Events Today: Core PCE Price Index / PCE Price Index (8:30 a.m. ET), Personal Spending (8:30 a.m. ET), Chicago PMI (9:45 a.m. ET), Atlanta Fed GDPNow (10:30 a.m. ET).

MongoDB Cuts Fiscal Year Outlook

Despite revenue growth, database management system MongoDB (Nasdaq: MDB) plunged by 25.85% in after-hours trading on Thursday.

Financials: MongoDB reported earnings of 51 cents per share in the past quarter and revenue of $450.6 million; both were better than expected.

Outlook: MongoDB trimmed its guidance for the fiscal year. It now expects earnings per share of $2.15 to $2.30 and revenue of $1.88 billion to $1.90 billion.

Quote: “We had a slower than expected start to the year for both Atlas consumption growth and new workload wins, which will have a downstream impact for the remainder of fiscal 2025.” - CEO Dev Ittycheria.

Stock Price: MongoDB was down 19% this year before these results. Most of the decline came in the last few weeks.

Final Thoughts: MongoDB is struggling to gain market traction. 2024 is shaping up to be an awful year for the growing tech company.

Gap’s Growing Market Share

Retailer Gap (NYSE: GPS) jumped 23.40% in after-hours trading on Thursday after posting strong financial results.

Financials: Gap reported earnings of 41 cents per share in the past quarter and revenue of $3.4 billion; both were better than expected.

Quote: “We gained market share for the 5th consecutive quarter with positive comparable sales at all brands.” - CEO Richard Dickson.

Final Thoughts: Gap continues to impress investors, although the company did warn about the “uncertain consumer and macro environment.”

Good Economy (Seriously): Why Are People So Down About the Economy? Theories Abound. (New York Times)

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