I wanted to get everyone’s opinion on Dell’s recent earnings report. The stock dropped almost 11% after hours. I bought 106 shares at $130.50 during their recent climb. I didn’t sell today because I like their growth prospects and had planned to sell around $150.
Dell seems to be a strong company, especially with its focus on enterprise solutions and cloud services, even though consumer PC sales have been a challenge. Despite that, they’re investing heavily in AI, data centers, and hybrid cloud, which could drive growth in 2025. They might also benefit from issues with SMCI and Nvidia’s new GPUs boosting demand for their infrastructure. With AI and enterprise tech becoming more important, it seems like Dell could see steady growth and potentially hit that $150 mark by Q2 2024.
What do you think? Should I continue to hold or sell during the holiday rally? My plan is to liquidate by July 2024 to buy a house.
If you plan to liquidate in July 2024, you might want to sell sooner… But seriously, if you’re thinking long-term, just sell if you’ve got solid profits. With things like tariffs or unexpected changes coming, it’s hard to predict what will happen. If your house depends on this, maybe consider playing it safe.
I’ve never really understood this idea of having a set exit price. What’s the reasoning behind picking that number?
I usually think about whether Dell will perform better or worse than companies like HP, Apple, or SMCI in the next few months, no matter what price it’s at. Not sure why people focus so much on setting a target price before selling.
@Keller
Companies use analysis to determine where they think the stock will go, but I don’t see the point in just picking a price. If you think the stock has more room to grow, hold on to it. If not, sell.
@Keller
It’s generally not a good idea to sell just because the stock went up. If you always sell based on a set percentage, you might miss out on bigger gains. Some stocks are just growing steadily and can continue to do so if you hold on to them for the long run.
A better way to decide when to sell is if the stock no longer meets your criteria or if you need the cash for something else.
@Keller
I don’t usually do that unless I don’t believe in the stock long term, but want to capitalize on the short-term hype. I set a price, usually based on how much I want to make, and lock in my profit. It’s more about the price and time combo. It’s worked out okay for me so far.
@Keller
The reason people sell at a certain price is mostly emotion. They don’t want to just make money, they want to feel smart about it. They think, “If this stock hits $150, I’ll lock in my profits and feel smart,” instead of constantly checking the news and only selling when it’s no longer the best choice.
If you wanted to exit around $150, why not sell a call option at that price? You could’ve used the premium to buy a put at $135 and protected yourself through the earnings report.
On another forum, there was a post mentioning that Michael Dell has been selling shares worth millions. Some users are also saying that Dell’s customer service and tech support are getting worse.
Dell has had good earnings, but the PC recovery hasn’t happened yet. No one in the supply chain is reporting higher demand for CPUs. And considering the drop in stock prices for other tech companies, don’t be surprised if Dell follows that trend.
Back when Dell was trading at $40, it was a great buy because it owned 95% of VMware, which was trading at $90. Smart investors got shares of VMware when it was spun off, and VMware shareholders eventually got shares in Broadcom when they bought VMware.
As someone who buys a lot of computer hardware and has been stuck with Dell because of US government rules, I have to say they’ve made some questionable decisions with the products they offer. They also rely too much on Microsoft, which is making its own mistakes. I’m not sure if Dell will adapt, and I think the market is ripe for someone more flexible to come in and beat them.
Whoever can make a product that fits government compliance rules and focuses on security could win a lot of contracts.