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What: Shares of embattled PC giant Dell
So what: Dell's first-quarter earnings and revenue fell a disappointing 33% and 4%, respectively, reigniting skepticism over management's much-ballyhooed turnaround efforts. Weak tech spending from corporations and increasing pressure from mobile threats like Apple on the consumer side continue to weigh heavily on results -- not to mention investor patience.
Now what: Management now expects second-quarter revenue growth of just 2% to 4% -- implying a total of $14.71 billion to $15 billion versus Wall Street's view of $15.44 billion. "This is a long-term strategy and will take time," CFO Brian Gladden reminded analysts in a conference call. "We're making progress and have several areas where our results are strong, proof points that our strategy's working." However, when you couple the quickly rising popularity of mobile devices with the macroeconomic headwinds working against Dell, I'd be cautious about buying into that turnaround talk.
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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Dell and Apple, as well as creating a bull call spread position in Apple. The Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days.