Dell Technologies (NYSE: DELL) stock plummeted during intraday trading Friday as Barclays lowered its price target.
Barclays has adjusted its outlook on Dell Technologies, slightly reducing the price target to $97 from the previous $98, while maintaining an underweight rating on the stock. This adjustment follows Dell’s first-quarter financial results, which saw the tech giant beat revenue expectations but meet the consensus estimates for earnings per share (EPS).
Dell reported positive metrics for its AI server business, though these results fell short of the heightened investor expectations reflected in the stock’s recent performance. Barclays noted that the anticipation surrounding Dell’s AI server capabilities had been considerable, and while the outcomes were positive, they did not fully meet investor expectations.
Barclays also raised concerns regarding the gross margin associated with Dell’s AI servers, suggesting it is lower than desirable. Additionally, the firm pointed out that the AI server business did not provide substantial benefits, to other areas of Dell’s operations, which could lead to less favorable outcomes in the upcoming quarters.
Barclays’ continued underweight rating reflects a cautious stance, indicating a belief that Dell’s stock may underperform relative to the broader market or its sector peers. The slight adjustment in the price target underscores Barclays’ ongoing reservations about Dell’s financial prospects, particularly concerning profitability and the broader impact of its AI server segment.
Dell Technologies (NYSE: DELL) Stock Movement
On Friday, DELL stock plunged 17.87%, closing at $139.56, marking a 9.12% decrease for the week. The trading volume was 67,192,832 shares, significantly higher than the average daily volume of 11 million.
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