This Week's 5 Dumbest Stock Moveshttp://www.fool.com/investing/general/2012/11/16/this-weeks-5-dumbest-stock-moves-7.aspx Rick Aristotle Munarriz
November 16, 2012
Stupidity is contagious. It gets us all from time to time. Even respectable companies can catch it. As I do every week, let's take a look at five dumb financial events this week that may make your head spin.
1. Dell of the dull
Then the "You're getting a Dell" dude got arrested.
It was pretty much all downhill from there.
Dell came out with another disappointing quarterly report on Thursday. The PC maker saw its earnings take a big hit as revenue fell 11% to $13.7 billion. No one was expected to see Dell grow its revenue in this climate, but even jaded analysts were holding out for at least $13.9 billion in revenue.
Things are bad at Dell, and the worst part is that it doesn't seem as if the company will ever be able to parlay its leadership role in desktops and laptops into the portable computing gadgetry that consumers are actually buying these days.
Revenue may have grown 47%, but there's a reason the stock opened at an all-time low.
All of the Chinese social networking website's growth came from its daily-deals and online gaming initiatives. These are niches that have been sorely disappointing in this country, and it remains to be seen how things will play out in China. As stateside investors know, these are opportunities that don't come cheap, and Renren's cost of revenues soared 190% over the past year, or four times the clip of the dot-com disappointment's top-line spurt.
Perhaps more important, online ad revenue declined by 14% despite a healthy uptick in active users.
Something's not right.
3. Don't do Windows
The world's largest software company has a new head of Windows after Steven Sinofsky was shown the door.
Analysts and financial journalists were stumped. Had Sinfosky overplayed his hand in a power move as some believe? It doesn't matter. In the eyes of the consumer this move comes just three weeks after the release of Windows 8. The public begins to think that the new operating system isn't doing well, and that slows the already stagnant PC sales.
Yes, this is really bad timing.
4. Blue by you
The struggling consumer electr