Dell stock ticks down after announcing layoffs amid tight PC market
Dell shares fell Monday following news of layoffs at the PC maker.
DAVE BRIGGS: Let's take a look now at some of the movers of the day, and we'll start with Dell shares. Today, you can see sliding 3%, with the computer technology company joining this growing list of companies announcing layoffs. Since the start of the year, multiple reports indicating Dell plans to lay off 5%, just over 6,000 workers, as a precautionary measure to stay ahead of downturn impacts.
Now, Jared, it is interesting to note that we see that drop in share price here. We've seen stocks often rise after these announcements as Wall Street often digests layoffs to mean cost cutting and hopefully better profit margins down the road. Apparently, the big lesson that we're learning here is not cost cutting, but how severe PC sales have fallen.
JARED BLIKRE: I think so, and we take a look at our heatmap on the YFi Interactive, we can see some of their competitors having a rough go of it today as well. We can see HPQ here at the bottom right next to Dell. That's down 2 and 1/2%. But Apple, not known for its PCs-- of course, its namesake Apple-- Mac laptops, that's down 1.79%.
I think the market for PCs in general, as advertised by some of these chip companies, just not there. This is not their time in the business cycle. Intel earnings a few weeks ago, they were a disaster. AMD had better earnings than them, but they're really attacking the server market. And you look at the pure PC plays, there's not many of them left anymore, Dave, but.
DAVE BRIGGS: Yeah, Dell is 55% of their revenue comes from the PCs. And the data out shows PCs go down 28% in the quarter. But theirs were down 37, far more than their competitors. So a rough go for them.