“Dell Inc. shares fell almost 4% Friday after Citigroup analyst Richard Gardner cut his rating on the No. 1 personal-computer company to sell on concerns about the company’s growth rates and eroding margins. Gardner didn’t just lower Dell to sell, he cut his rating by two full notches from his previous opinion of buy, cut his price target on the stock to $28 a share from $37, and lowered his fiscal year earnings-per-share forecasts on Dell for 2007, 2008 and 2009,” Rex Crum reports for MarketWatch. “Investors showed their displeasure with Dell, sending the company’s shares down to a 52-week low of $27.07 at one point in early trading.”
Crum reports, “Gardner said that the company is being negatively impacted by several factors, including declining demand in its main, corporate end markets, and cost-cutting by competitors. Gardner also pointed to data from technology research firm IDC, which on Thursday released information about the size of the U.S. PC market. The IDC figures cited flat PC shipment growth for Dell in the U.S. during the first quarter of this year, and only 5% year-over-year growth for the entire U.S. PC market. As a result, Gardner said Dell is sure to feel the pinch of one of its most-important business areas. ‘In the face of likely further slowing in end market growth domestically, near-term prospect for Dell’s most-profitable end market do not seem bright,’ Gardner wrote in a research note.”
Full article here.
MacDailyNews Note: Current market values: Dell: $63.9 billion, Apple: $57.4 billion. The next time Apple passes Dell in market value will be the last.
• Get the new iMac with Intel Core Duo for as low as $31 A MONTH with Free shipping!
• Get the MacBook Pro with Intel Core Duo for as low as $47 A MONTH with Free Shipping!
• Apple’s new Mac mini. Intel Core, up to 4 times faster. Starting at just $599. Free shipping.
• Apple’s brand new iPod Hi-Fi speaker system. Home stereo. Reinvented. Available now for $349 with free shipping.
• iPod. 15,000 songs. 25,000 photos. 150 hours of video. The new iPod. 30GB and 60GB models start at just $299. Free shipping.
• Connect iPod to your television set with the iPod AV Cable. Just $19.
• iPod Radio Remote. Listen to FM radio on your iPod and control everything with a convenient wired remote. Just $49.
Related MacDailyNews articles:
Dude, you got a Dell? What are you, stupid? Only Apple Macs run both Mac OS X and Windows! – April 05, 2006
The Motley Fool: Apple ‘may be the next Dell’ – April 07, 2006
Analyst on Dell+Alienware: ‘If you’re going to spend that kind of money, get a Mac’ – March 23, 2006
Apple beats Dell: lands deal to supply 12,675 iBooks to Henrico County Middle Schools [UPDATED] – February 09, 2006
Payback? Wall Street didn’t like Apple passing Dell in market value – February 09, 2006
Dell dumps line of hard drive-based MP3 players, nobody notices for over a month – February 06, 2006
Apple Mac is #1 in European education market, pushes Dell down into second place – February 03, 2006
BusinessWeek: How can Apple be worth more than Dell? – January 20, 2006
Steve Jobs emails Apple team: Michael Dell not the best prognosticator, Apple worth more than Dell – January 16, 2006
Apple now worth more than Dell – January 13, 2006
Struggling Dell has lost its mojo while Apple shows rapid growth – November 07, 2005