Dell's AI Server Momentum

Plus, NYCB's "material weaknesses."

Today is Friday, March 1, 2024.

The Early Bird Index today is 71.65.

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Dell's AI Server Momentum

The artificial intelligence boom continued as Dell Technologies (NYSE: DELL) jumped 19.32% in after-hours trading on Thursday following the company’s financial results.

Financials: Dell reported earnings of $2.20 per share in the past quarter and revenue of $22.3 billion; both were better than expected.

Details: Revenue dropped 14% from the previous year, including a 5% decrease for the client solutions group.

Yes, But: Revenue for the infrastructure solutions group jumped 10% thanks to the AI boom. The company is so strong right now that Dell increased its dividend by 20%.

Quote: “Our strong AI-optimized server momentum continues, with orders increasing nearly 40% sequentially and backlog nearly doubling, exiting our fiscal year at $2.9 billion” - Dell COO Jeff Clarke.

Stock Price: Before the earnings results on Thursday, Dell was up 134% in the last year.

Final Thoughts: Dell is in a good position right now and is benefiting from AI thanks to its growing server business.

Ticker TeaDelivering daily updates on the news that matters: financial markets.


Notable Earnings Today: Plug Power (PLUG), RadNet (RDNT), Amneal Pharmaceuticals (Nasdaq: AMRX), Atlantica Sustainable Infrastructure (Nasdaq: AY), Fubo (NYSE: FUBO), inTest Corp (NYSE American: INTT), Rapid Micro Biosystems (Nasdaq: RPID).

Notable IPOs Today: BitFuFu Inc. Class A Ordinary Shares (Nasdaq: FUFU).

Notable Equity Crowdfunding Campaigns Ending Today: Umbrella Dry Bar (Wefunder), Power To The World Corporation (Raise Green), American Quatervois (Wefunder).

Notable Economic Events Today: S&P Global US Manufacturing PMI (9:45 a.m. ET), ISM Manufacturing PMI / Prices / Employment (10:00 a.m. ET), Michigan Consumer Expectations / Sentiment (10:00 a.m. ET), Construction Spending (10:00 a.m. ET).

NYCB's "Material Weaknesses"

New York Community Bank (NYSE: NYCB) plummeted 21.71% in after-hours trading on Thursday after disclosing that it lost an additional $2.4 billion in the previous quarter.

Powering the Story: In a filing, NYCB said it “identified material weaknesses in the Company’s internal controls related to internal loan review, resulting from ineffective oversight, risk assessment and monitoring activities.”

Also: NYCB announced on Thursday that it is replacing its CEO and that its upcoming financial results will be delayed.

Background: The bank has faced recent challenges due to its exposure to commercial real estate lending. The stock is down 53% in 2024.

Final Thoughts: NYCB is giving investors flashbacks to last spring when several other regional banks collapsed. It’s a tough time to invest in this stock.

Solana Gains Amid Crypto Surge

The price of Solana jumped 11% on Thursday amid a strong time in cryptocurrency.

Details: Solana is benefiting from the overall surge in crypto, but there are also other catalysts unique to this asset. For example, a Solana gaming project just acquired certain licensing rights. And a protocol called Clone that works on the Solana blockchain also announced a new launch.

Final Thoughts: Solana is up 43% in the last month and has already emerged as one of the most popular cryptos.

The Buckley Stops Here: Vanguard CEO Tim Buckley to Step Down (Wall Street Journal)

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The contents from Early Bird are for informational and entertainment purposes only and do not constitute financial or legal advice.