The tech sector has been very popular with investors since the March lows. However, investing in tech stocks can be very tricky because not all stocks will rise. Dell (DELL), for example, just reported lousy results:
Dell reported net income of $337 million, or 17 cents a share, in the quarter that ended on Oct. 30, down from $727 million, or 37 cents a share, it earned in the same period last year. Excluding charges, Dell earned 23 cents a share in the quarter, missing the forecast of 28 cents a share expected by analysts polled by Thomson Reuters.
Dell’s revenue fell to $12.9 billion from $15.16 billion, while analysts looked for the company to report revenue of $13.18 billion.
Dell used to rule the PC industry, but its status has fallen dramatically in recent years. After the earnings report, the stock dropped in the after-hours market. The company made some very optimistic comments yesterday. As the economy gets stronger, more money could go into business infrastructure which would help Dell.
I’ve had the stock rated as a Sell for several months, but I recently upgraded it to a Hold. If the price continues to fall, making the shares a bargain, then I’d be willing to raise Dell to a Buy. Until then, Dell continues to be a Hold.