Thread regarding Dell Inc. layoffs

it is tanking again

Dell's stock price is about reach below HP even though the latter no longer sells server and IT solutions. That should really tell you a lot about Dell EMC.

Imagine if HP and HPE were a single company again. Their company valuation would greatly surpass Dell. Obviously HP is doing something right for Dell to be downgraded and HP to have Buffett toss a cr-p ton of money their way.

Warren Buffett's Berkshire Hathaway revealed on Wednesday that it has purchased nearly 121 million shares of HP Inc.

Shares of the personal computing and printing company rose nearly 10% in after-hours trading

HP could buy us.

Microsoft could buy us

MSFT buying HW assembly company!? That ain't gonna happen people :-)

Microsoft could buy us, complete all the hybrid azure and device picture and offload the rest

Storage and compute in DC's has been smashed, no matter how many times we say "the argument has been won, multicloud is the future" it wont change the reality. Customers are moving nearly totally to Public Cloud and there is small pickings at the adjacent/hybrid end with many competitors. Sell it off

@2hhl+1g58L1Os This is correct.PC and laptops are not the issue but servera and storage seem to have dropped of the planet.

PC sales havent stopped here, the Dell approach of not going after the volume cheapo play (Education) and instead focusing on mid tier with services means better margins and predictable return/warranty tail. A three percent contraction on a market that has nearly doubled is a no brainer.

Storage and Compute on the other hand. . thats gone cloud. Need to jump the shark

@1fwu+1g58L1Os who knew dell sold servers and storage. They must be good at it.

Dells revenue stream is 2x in PC sales vs Storage & Servers. It was predictable that PC sales would decline post Covid era. Spinning off software division VMware was bad move as it was cash cow. However Dell was desperate for money pay down debt. I don’t see bright future for stock it’s just pure hardware play

Dell was previously on Goldman’s Conviction List, but Hall removed it from there in conjunction with his downgrade.
“Recall, our buy rating on DELL was primarily based on the value unlock opportunity for the company from the VMW [VMware Inc.] spinoff which has since been completed,”

With VMware separated from Dell
The money that was generated was valued into the numbers.
Now that it’s completed where is the extra value to be found now ?

Is it a good time to buy Dell stock?

Absolutely! I am buying large volumes! The idea is to retire multi-millionaire from Dell after few years..

Wonder how many spreadsheets
With employees job and pay grade are being compiled, and how many older employees have a target on them…

Is it a good time to buy Dell stock?

Interesting where’s the unusual item coming from ????

How about cooking the books?

https://simplywall.st/stocks/us/tech/nyse-dell/dell-technologies?blueprint=1958985&utm_medium=finance_user&utm_campaign=conclusion&utm_source=apple#executive-summary

The above lists risk analysis ….

Earnings are forecast to decline by an average of 3% per year for the next 3 years

Negative shareholders equity

Has a high level of debt

Unstable dividend track record

analysis suggests that shareholders have noticed
something concerning in the numbers. Data indicates that Dell Technologies' profit received a boost of US$3.0b in unusual items, over the last year. While it's always nice to have higher profit, a large contribution from unusual items sometimes dampens analysts enthusiasm. We ran the numbers on most publicly listed companies worldwide, and it's very common for unusual items to be once-off in nature. And that's as you'd expect, given these boosts are described as 'unusual'. We can see that Dell Technologies' positive unusual items were quite significant relative to its profit in the year to January 2022. As a result, we can surmise that the unusual items are making its statutory profit significantly stronger than it would otherwise be.
Significant positive unusual item makes Dell Technologies' earnings a poor guide to its underlying profitability. For this reason, we think that Dell Technologies' statutory profits may be a bad guide to its underlying earnings power, and might give investors an overly positive impression of the company.

Interesting where’s the unusual item coming from ????

To @pkg+1g58L1Os: I think Dell is still one of the most attractive companies to start your SWE career for. I am confident that most of the new graduates will still choose Dell over the other cutting edge cloud and software companies such as Google, AMZN or Microshaft.

The big question now is if those new grads from the top universities will still choose Dell over MSFT, Google or AWS. Dell Management has to raise the starting salary for new grads SWE in order to alleviate their uncertainty after this downgrade. At least one thing is clear - they are not gonna choose HPE or IBM..

Is it safe to assume virtualstream won't be saving Dells cloud.

I think Dell still provides cloud services but not sure.

Like I said in my post @OP+1fVlpuNx massive cuts are obviously on the way.
Everthing is shifting online.
Dell doesnt need the staff it has and cutting staff payroll is the fastest way to save.